PSEi down nearly 20% from Jan 29’s record close
Trade war fears continued to weigh on investors sentiment on Wednesday with the benchmark Philippine Stock Exchange index (PSEi) losing losing 0.70 percent or 50.99 points to end at 7,261.62.
It was the lowest since the 7,245.97 close posted on March 27 last year and was nearly 20 percent down — just short of bear territory — from January 29’s record peak of 9,058.62.
The wider All Shares, meanwhile, slipped 0.48 percent or 21.49 points to finish at 4,460.22.
“The market continued its correction as trade tensions persisted with the possible imposition of tariffs by the United States as it promotes its America first policy through President Donald Trump,” Diversified Securities, Inc. trader Aniceto Pangan said.
“Aside from this, investors awaited the [Monetary Board] policy rate ruling … thus [a]continued sell-off occured,” he added.
Trading closed before the Bangko Sentral ng Pilipinas announced that its policymaking Monetary Board had decided to raise interest rates by another 25 basis points, following up on an identical increase last month, to contain inflation.
“[Since] rates were increased today (yesterday), then there is a possibility of a rebound tomorrow (today) as long as trade tensions will be resolved,” Pangan said.
Stock markets worldwide plunged on Tuesday after Trump warned that Washington could slap duties on more Chinese goods in a tit-for-tat exchange that has raised the possibility of a full-blown trade war between the world’s two biggest economies.
Bargain hunting lifted most Asian markets on Wednesday but investors were said to be still anxious.
In Manila, only the mining and oil index gained, rising by 0.25 percent.
Over 1.69 billion issues valued at P5.3 billion changed hands.
Losers led winners, 103 to 92, while 45 stocks remained unchanged.
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