Philippine Stocks Edge Lower Amid Caution Following Trump’s Inauguration

Philippine stocks experienced a slight decline on Tuesday as investors opted to stay cautious in the wake of US President Donald J. Trump’s inauguration and his early policy statements.

The benchmark Philippine Stock Exchange Index (PSEi) fell by 0.15%, or 9.68 points, closing at 6,340.21. Similarly, the broader all shares index dropped by 0.07%, or 2.62 points, to end at 3,700.24.

According to Japhet Louis O. Tantiangco, Senior Research Analyst at Philstocks Financial, Inc., the local market's modest decline can be attributed to investors taking a more cautious approach while they assess the new US president's initial days in office. There are concerns primarily focusing on the details of Trump’s proposed protectionist trade policies.

Regina Capital Development Corp. Head of Sales, Luis A. Limlingan, echoed this sentiment, noting that trading remained subdued following Trump’s inauguration. He mentioned that the US markets were closed on Monday due to Martin Luther King Jr. Day, but futures saw some gains as Trump began his second term. Optimism had been fueled by expectations for pro-economy measures, particularly in the banking and energy sectors. Enhanced market sentiment was also noted after it was revealed that no new tariffs would be announced immediately.

Early market movements were affected by a mix of apprehension and relief as President Trump’s rhetoric seemed softer on China than expected. However, he quickly turned attention to potential punitive tariffs on Canada and Mexico shortly thereafter, as reported by Reuters.

This shift resulted in a sudden halt to the initial relief felt by markets, as Trump's remarks in the White House indicated he was considering implementing tariffs of 25% on Mexico and Canada starting from February 1.

While initially promising to enforce steep tariffs on global imports—including 10% to 20% on all goods entering the US and 60% on items from China—Trump’s memo after taking office only directed a review and investigation into US trade deficits without immediate action.

At the local level, most sector indices suffered losses on Tuesday. The mining and oil sector saw a drop of 2.12%, or 168.70 points, concluding at 7,762.26. The services sector declined by 0.82%, or 17.25 points, closing at 2,080.96. The industrials segment fell by 0.56%, or 50.85 points, to 8,921.78. Financials also decreased by 0.4%, or 8.91 points, wrapping up at 2,180.54.

Conversely, the property sector witnessed a rise of 0.88%, or 20.54 points, reaching 2,337.20, while holding firms climbed by 0.34%, or 18.16 points, to settle at 5,343.27.

Among individual stocks, Converge ICT Solutions, Inc. led the index by gaining 2.62%, reaching a price of P18.00. In contrast, Universal Robina Corp. saw a decline of 4.07%, and ended at P66.00.

Trading volume increased to P3.87 billion, with 1.01 billion shares changing hands, compared to P3.81 billion and 1.54 billion issues traded on the previous day. The number of decliners outpaced advancers with 104 stocks falling against 76 that gained, while 59 stocks remained unchanged.

Additionally, net foreign selling rose to P173.15 million on Tuesday, up from P107.92 million the prior day.

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