The Philippine benchmark index (PSEi) plunged 4.3 percent to 5,822.85—its lowest close in 30 months or since early October 2022.
According to AP Securities, members of the PSEi tumbled over 4 percent, or P360 billion in value on Monday while selling wiped out P686.4 billion in value.
“The Philippine Stock Exchange Index (PSEi) is down over 4 percent and is now trading at the 5,800 level due to bearish sentiment amid geopolitical tensions arising from the recently imposed tariffs by U.S. President Donald Trump,” said Wendy B. Estacio-Cruz, research head at Unicapital Securities.
BSP cut keeps market afloat
Jonathan Ravelas, Reyes Tacandong & Co. senior advisor, said prospects of a 25 basis point interest rate cut this week kept the PSEi above 5,800.
Failure to cut could trigger losses towards 5,500 or even 5,300, he warned.
Asian markets suffer losses
Hong Kong’s Hang Seng Index closed down over 13 percent while Japan’s Nikkei 225 index shed 7.9 percent.
The Shanghai Composite fell 7.3 percent while Taiwan’s Taiex lost 9.7 percent.
PSE’s large cap losers
Tycoon Enrique Razon Jr.’s International Container Terminal Services was the top traded stock as it lost nearly 5 percent to P320 each.
It was followed by Ayala Corp. (-3.24 percent), BDO Unibank (-4.24 percent), Bank of the Philippine Islands (-4.14 percent), and Jollibee Foods Corp. (-9.46 percent to P203).
A total of P13.2 billion worth of stocks changed hands while foreigners were net sellers to the tune of P3.24 billion.
What’s next?
“[W]e believe that this sell-off is largely sentiment-driven,” said Estacio-Cruz.
“In our view, as long as the underlying value of businesses and economies remains intact and undamaged by a physical war, the market will eventually stabilize, and stocks will bounce back,” she added.
Ravelas noted the PSEi could still range from 5,800–6,300 if an expected interest rate cut provides stability.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
