The Philippine benchmark index (PSEi) closed 92.52 points lower at 7,165.42, after trading flat for most of the session as individual US states began reporting results.
The decline accelerated once it became evident that Trump would secure a victory over Vice President Kamala Harris.
“The benchmark index fell as investors reacted to US election results signaling a decisive victory for Donald J. Trump and the Republican Party,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said in a text message on Wednesday.
“Foreign investors turned net sellers by over P1 billion, and many market participants grew cautious amid speculation on the economic policy impact of a second Trump administration on emerging markets like the Philippines,” he added.
Trump’s policies to stoke inflation
“Essentially, a Trump win would mean more tariffs, which could reignite inflation, potentially disrupting the easing trajectory,” Alfred Benjamin R. Garcia, research head at AP Securities, said on Wednesday.
Large-cap decliners included International Container Terminal Services, BDO Unibank, SM Prime Holdings, and Ayala Land Inc.
“A slower easing pace would negatively impact property companies,” Garcia added. “A Trump presidency is also unfavorable for global trade.”
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
