Philippine stocks opened the week in the red, with the benchmark index falling below the 6,000 level on worries over global market conditions and uncertainties on interest rates.
The benchmark Philippine Stock Exchange index (PSEi) closed at 5,993.48 Monday, down by 67.85 points, or 1.12 percent, while the broader all-shares index ended at 3,611.16, lower by 18.12 points, or 0.50 percent.
Regina Capital Development Corp. head of sales Luis Limlingan said investors remained cautious despite the higher-than-expected December cash remittances at $3.38 billion.
Aside from concerns over US President Donald Trump’s economic policies, the Bangko Sentral ng Pilipinas’ decision to hold off rate cuts also fueled the uncertainty.
Analysts said while there may be some buying opportunities, the market needs more positive news to see a strong recovery in the coming days.
The peso also retreated to 58.03 against the US dollar Monday from 57.83 Friday.
Property stocks saw the biggest losses, declining by 3.06 percent. The mining and oil sectors performed better, rising 2.7 percent.
Value turnover was lower at P4.72 billion, with 74 gainers, 114 decliners and 61 unchanged issues.
DMCI Holdings Inc. was the top index gainer, jumping by 4.25 percent to P11.54, while SM Prime Holdings Inc. declined the most, dropping 5 percent to P21.85.
Asian markets also fluctuated Monday as investors assessed the global economic outlook while US President Donald Trump pushes ahead with his trade war.
Trading floors have been hit by uncertainty since Trump returned to the Oval Office last month announcing a series of tariffs against key trading partners.
While some of the measures have been delayed for negotiations, observers warn the imposition of huge levies on exports to the world’s biggest economy could deal a hefty blow to financial markets.
“Traders have been stuck in a game of ‘will he or won’t he’ on sweeping tariffs, with geopolitical allies and rivals alike in the crosshairs,” said Stephen Innes of SPI Asset Management.
“The stock market’s initial reaction was caution, but as delays, carve-outs, and sabre-rattling mix into an increasingly muddled policy picture, the mood is shifting from calculated hedging to outright confusion.”
He added that “tariffs remain one of the biggest risk factors for financial markets”.
“For now, the only certainty is uncertainty.”
After a tepid lead from Wall Street, Asian equities ended on a mixed note.
Hong Kong was barely moved after last week’s rally fueled by a surge in tech firms following the release of Chinese startup DeepSeek’s chatbot.
“DeepSeek proves that China’s private sector remains innovative and competitive, and it also shows the possibility for China’s continued AI advancement,” said analysts at Bank of America Global Research.
Still, the mood in Hong Kong was improved by news that Chinese President Xi Jinping was meeting Alibaba co-founder Jack Ma and other top entrepreneurs this week.
The gathering fueled hopes of fresh support for the private sector, which has been hit by a series of crackdowns by the government in the past few years, hammering share prices.
Ma’s inclusion hints at the billionaire magnate’s potential public rehabilitation after years out of the spotlight following a tangle with regulators.
Other participants included Ren Zhengfei — the founder of tech titan Huawei — and Wang Chuanfu, who established electric-vehicle giant BYD.
Tokyo edged up as data showed the Japanese economy slowed sharply last year but enjoyed a forecast-topping final quarter thanks to strong exports.
Shanghai, Seoul, Singapore, Taipei, Jakarta and Wellington rose, while Sydney, Mumbai, Bangkok and Manila slipped.
London and Paris fell at the open while Frankfurt edged up.
Investors are also keeping tabs on developments over the Ukraine war after Trump said on Sunday he could meet Russian counterpart Vladimir Putin “very soon”, adding he believed he genuinely wanted to stop the fighting. With AFP
