Share prices on the Philippine Stock Exchange fell on Thursday on investor anxiety over US President Donald Trump’s trade policies and potential new borrowings by the Philippine governnment to bridge a budget gap.
The benchmark PSEi dropped 20.87 points or 0.34 percent to 6,124.09, while the broader All Shares declined 13.22 points or 0.36 percent to 3,655.19.
Luis Limlingan, managing director of Regina Capital and Development Corp., said investor anxiety over US President Donald Trump’s trade policies escalated and weighed on the market.
“During his first cabinet meeting, Trump confirmed that tariffs on Canada and Mexico would take effect and announced plans to impose 25 percent on goods from the European Union, further fueling trade war concerns,” Limlingan added.
Losers outnumbered gainers 103 to 73, while 61 issues closed unchanged. Trading value amounted to more than P6.35 billion.
The trading session was halfway through when the Bureau of the Treasury reported a government budget deficit of P1.51 trillion last year, marginally lower than P1.512 trillion in 2023, but higher than the official target of P1.484 trillion.
Wendy Cruz, Unicapital Securities Inc. head of research, said the deficit prompted investors to look at how that would impact government borrowings and the economy.
“In our view, the sustained budget deficit may result in continued borrowing, which increases the national debt and interest payments,” said Cruz.
“While investor confidence and credit ratings remain key factors to watch, the deficit’s stability compared with 2023 suggests minimal immediate shocks,” she added.
In the long run, a persistent deficit will have an impact on the gross domestic product, Cruz said.
Most actively traded BDO Unibank Inc. gained P2.60 to P150.50. Ayala Land Inc. dropped P0.05 to P22.45. Universal Robina Corp. shed P2.80 to P68.20. International Container Terminal Services Inc. closed unchanged at P340. Bank of the Philippine Islands declined P1 to P131. Ayala Corp. shed P15 to P565. Jollibee Foods Corp. dipped P2 to P266. Aboitiz Power Corp. declined P0.35 to P40.50. DigiPlus Interactive Corp. lost P0.30 to P36.40. SM Prime Holdings Inc. declined P0.35 to P24.05.
