Share prices fell on Thursday, breaking away from upbeat regional markets as investors reacted to the United States’ decision to hike tariffs on Philippine exports to 20 percent starting August 1.
Investors on the Philippine Stock Exchange reacted to a trade blow dealt by Washington’s trade policy as regional markets climbed. Foreign outflows reached P580 million, underscoring investor unease despite resilient regional sentiment.
The benchmark Philippine Stock Exchange index (PSEi) dropped 41.14 points or 0.63 percent to close at 6,463.20. The broader All Shares index slipped 0.14 percent or 5.16 points to 3,812.46.
Despite the market’s decline, gainers outnumbered losers 107 to 85, with 55 issues unchanged — suggesting the sell-off was concentrated among index-heavy stocks.
Turnover remained modest, with total trade value at P9.45 billion across 85,862 transactions involving 1.4 billion shares. Foreign investors turned net sellers, offloading P580.67 million worth of local equities. Foreign buying stood at P4.62 billion while selling reached P5.2 billion.
Philstocks Financial Inc. research manager Japhet Tantiangco said the market traded sideways in early session but weakened toward the close as concerns over rising tariffs weighed on sentiment.
“This reflects investors’ reaction toward the US’ upward revision of its tariffs on Philippine exports from 17 percent to 20 percent,” he said.
RCBC chief economist Michael Ricafort said the new tariff regime could inject “some volatility” into local markets, especially if it disrupts trade flows or global investor sentiment.
Still, some analysts pointed to structural resilience. Wendy Cruz, head of research at Unicapital Securities Inc., said the Philippines’ limited reliance on exports — compared to its Southeast Asian peers — provides a buffer.
“Our country remains largely driven by domestic demand, remittance inflows, and growing trade ties outside the US,” Cruz said. “However, expanded tariffs, especially without swift negotiation, could dent export growth, particularly in high-value manufacturing.”
She noted potential ripple effects across sectors. “The consumer sector, especially manufacturing, could face rising input costs. The banking sector may see slower credit growth as companies in trade-exposed industries delay expansion plans.”
Cristina Ulang, head of research at First Metro Investment Corp., said the tariff issue could be raised by Philippine officials during this week’s Asean–United States Post-Ministerial Conference, where US Secretary of State Marco Rubio is present.
“But even with the increase, the Philippines remains competitive,” Ulang said. “Vietnam also faces a 20 percent tariff, and others in Asia are higher.”
Diversified Securities trader Seth Pangan added that the Philippines might even benefit in some cases. “It’s possible that some firms will set up production here to take advantage of comparatively lower tariffs versus other countries hit harder by the new US policy,” he said.
Elsewhere in Asia, equity markets brushed off the tariff escalation. An MSCI index of emerging Asian stocks edged higher, lifted by a 1.6 percent gain in South Korea and a 0.8 percent advance in Taiwan.
