The Philippine Stock Exchange index plunged Thursday by more than 1.6 percent, or 101.95 points, to close at 6,145.73, as the reciprocal tariffs announced by the Trump administration sent markets reeling.
The wider all-shares index also declined by 40.71 points, or 1.1 percent, to settle at 3,664.41.
The newly-imposed tariffs include a 10-percent baseline tariff on all imports, effective April 5, and additional reciprocal tariffs targeting countries with substantial trade surpluses with the US.
The Philippines faces a 17-percent reciprocal tariff, one of the lowest in the Southeast Asian region. While this could affect the growth of the domestic economy, economists are still seeing opportunities for the Philippines.
“While we think the country’s strong domestic consumption base (about 75 percent of GDP), will provide a buffer against external shocks and reducing overall trade vulnerability, we acknowledge certain risks that will bring some adjustments to our economic forecast,” Bank of the Philippine Islands lead economist Emilio Neri said.
“The Philippines might see indirect benefits from the U.S. tariffs on other countries. Softer global demand could put downward pressure on oil prices, easing import costs. Additionally, exporters from countries like China, facing higher tariffs, may redirect their goods to alternative markets, including the Philippines, which could help contain inflation,” he said.
China Banking Corp. managing director Juan Paolo Colet also sees silver lining for the Philippines.
“The new US reciprocal tariff regime presents an opportunity for us to position the Philippines as a competitive export base to attract foreign companies. To do that effectively, we need to redouble efforts to lower energy costs, improve infrastructure, and enhance the ease of doing business,” Colet said.
“For stock market investors, the immediate concern is whether the US tariff imposition is a one and done event or the start of escalating trade wars that could dampen global economic growth. We expect volatility to persist as the situation evolves,” he said.
Except for mining and oil which rose 0.39 percent, all sectors ended in the red. Services declined the most, decreasing by 1.98 percent.
Value turnover reached P4.34 billion, with 125 decliners and 71 advancers.
Despite the market’s decline, Manila Electric Co. rose 1.48 percent to P550. Puregold Price Club Inc. was the main index laggard, falling 4.83 percent to P26.60. With AFP