Philippine shares tumbled Tuesday as the market reeled from fresh tariff threats by US President Donald Trump, took profit ahead of the Bangko Sentral ng Pilipinas (BSP)’s policy meeting and digested the fallout from a corporate scandal involving a major nickel producer.
The benchmark PSEi fell 2.17 percent, or 136.34 points, to close at 6,145.24.
The broader All Shares lost 1.42 percent, or 53.03 points, to 3,684.55.
Market breadth tilted negative, with 112 losers against 81 gainers and 64 unchanged. Trading value reached P14.32 billion across 100,415 trades, with more than 1.55 billion shares changing hands. Foreign funds were net sellers of P2.04 billion.
Corporate turmoil
Global Ferronickel Holdings Inc. (FNI) slumped 12.14 percent to P1.23, down 17 centavos from Friday’s close, after confirming that its chairman, Joseph Sy, has been detained by the Bureau of Immigration since Aug. 21.
The company called the case “unfounded,” while authorities said Sy, a Chinese national, had overstayed.
Local markets were closed Monday for National Heroes’ Day.
Index pressure
Luis Limlingan, managing director at Regina Capital Development Corp., said selling pressure intensified at the close of trade as investors adjusted positions ahead of changes to the MSCI index taking effect August 26 (US time).
“Investors are adjusting their positions in line with the latest composition of the MSCI index,” Limlingan said at the time of trading. “They are also positioning ahead of the BSP’s policy rate decision this week, with all eyes on how the stock market will react once the central bank’s move is confirmed.”
Global headwinds
Overseas cues deepened the gloom. Rizal Commercial Banking Corp. chief economist Michael Ricafort said US markets slid overnight amid concerns about central bank independence after Trump abruptly fired Federal Reserve Governor Lisa Cook.
At the same time, Trump renewed threats of tariffs against countries that impose digital taxes, alarming Philippine traders given Manila’s recent adoption of a levy on digital services.
“This could impact us as we recently imposed a tax on digital services,” Alfred Benjamin Garcia, head of research at AP Securities Inc., said.
Japhet Tantiangco, research manager at Philstocks Financial Inc., flagged Trump’s separate threat of “significant tariffs against China if the country would not export rare-earth magnets to the US,” warning that such a move could unsettle global supply chains and weigh further on emerging markets.
