Stocks slip on new US tariffs, record low peso

MANILA, Philippines — The local stock market ended the week in the red territory, finishing slightly lower yesterday as the United States imposed new tariffs on Philippine exports and the peso sank to a new record low.

The benchmark Philippine Stock Exchange index slipped by 0.03 percent or 2.11 points to end the week at 6,281.01.

The broader All Shares index also retreated by 0.13 percent or 4.59 points, settling at 3,422.48.

The local bourse closed lower amid concerns over the weakening peso as well as inflationary pressures after crude oil prices climbed above the $100-per-barrel level.

“The local market declined as sentiment got hammered by the rise in global oil prices with Brent crude hitting $100 per barrel, and the further weakening of the local currency to record lows,” Philstocks Financial Inc. said.

“If directions are sustained, both are expected to pose upside risks to inflation,” it said.

The peso tumbled to a fresh record low, weakening by 9.7 centavos to close at 61.847 to $1 from Thursday’s 61.75 to $1.

Luis Limlingan of Regina Capital said investors also remained cautious as they assessed the impact of the new US tariffs on the Philippines.

“Sentiment was weighed down by uncertainty over the potential effects of higher trade costs on the domestic economy and corporate earnings,” Limlingan said.

According to RCBC chief economist Michael Ricafort, the US will impose duties of 10 percent to 12.5 percent on imports from most major trading partners after concluding about 60 economies failed to stop forced labor in supply chains.

Sectoral gauges were a mixed bag, with services leading those in the green with a 1.03-percent jump, while financials incurred the biggest loss at 1.38 percent.

Market breadth was negative as decliners outnumbered advancers, 90 to 81, while 69 issues were unchanged.

ICTSI stayed as the most actively traded stock, rising by 1.25 percent to P969 per share, followed by Ayala Land and BDO Unibank which tumbled by 0.83 percent and 2.38 percent, respectively, to P16.70 and P123.