Philippine shares slumped on Tuesday as investors reacted to renewed tariff threats from U.S. President Donald Trump, cautious positioning ahead of the Bangko Sentral ng Pilipinas (BSP)’s policy meeting, and a corporate controversy involving a major nickel producer.
The benchmark PSEi dropped 2.17 percent, or 136.34 points, closing at 6,145.24. The All Shares index slid 1.42 percent, or 53.03 points, to 3,684.55.
Market breadth was negative, with 112 decliners against 81 advancers and 64 unchanged. Trading value totaled ₱14.32 billion across 100,415 deals, with more than 1.55 billion shares traded. Foreign investors were net sellers, unloading ₱2.04 billion worth of shares.
Corporate Fallout
Global Ferronickel Holdings Inc. (FNI) plunged 12.14 percent to ₱1.23, losing 17 centavos from Friday’s close. The company confirmed that its chairman, Joseph Sy, has been in the Bureau of Immigration’s custody since August 21.
Authorities said Sy, a Chinese national, had overstayed his visa, while FNI dismissed the allegations as “unfounded.”
Local markets were closed the previous day for National Heroes’ Day.
Index and Policy Pressures
Luis Limlingan, managing director at Regina Capital Development Corp., said selling intensified late in the session as investors adjusted portfolios ahead of the MSCI index rebalancing effective August 26 (U.S. time).
“Investors are repositioning in line with the new MSCI index composition,” Limlingan noted, adding that traders are also bracing for the BSP’s policy rate decision this week.
Global Concerns Deepen Losses
External developments added to the market’s gloom. U.S. equities slid overnight after Trump abruptly dismissed Federal Reserve Governor Lisa Cook, raising concerns about the independence of the central bank.
Trump also renewed his threats of tariffs on countries imposing digital taxes, unsettling Philippine markets given Manila’s recent approval of a digital services tax.
“This could impact us as we recently imposed a tax on digital services,” said Alfred Benjamin Garcia, head of research at AP Securities Inc.
Meanwhile, Philstocks Financial Inc. research manager Japhet Tantiangco pointed to Trump’s separate warning of “significant tariffs” on China should it fail to export rare-earth magnets to the U.S. He said such a move could disrupt global supply chains and weigh further on emerging markets.
