November 7, 2024 | 12:00am
MANILA, Philippines — Investors have sent a clear message of wariness about the impact of a second Trump presidency, going on a selloff spree on the evening of the elections in the US.
The bellwether Philippine Stock Exchange index (PSEi) yesterday gave up 1.27 percent, or 92.52 points, to close at 7,165.42, as investors were concerned by the return of Donald Trump as US president.
The broader All Shares index also dropped by 0.59 percent, or 23.54 points, to land at 3,969.97, as the PSEi was all red, with every industry down.
China Bank Capital Corp. managing director Juan Paolo Colet said investors were shaken by the possible economic impact to the Philippines of a second Trump administration. In his campaign, Trump promised to deport immigrants en masse on day one, as he also vowed to increase tariffs on all imports.
Trump managed to get away with a return to the White House, as the Democrats bet and US Vice President Kamala Harris failed to obtain the votes from swing states. As of yesterday, Trump was leading the race 267 to 224, and needed only three electoral votes to win.
“Foreign investors turned net sellers by more than P1 billion, and many market participants also turned cautious in the face of speculation on the impact of economic policies of a second Trump administration on emerging markets like the Philippines,” Colet said.
The Republican Party, known for its conservative views and policies, are also set to control both the House and the Senate, giving Trump a free hand in passing his agenda.
The PSEi saw P4.59 billion worth of shares change hands throughout trading, with losers edging the winners, 113 to 86, while 55 issues were unmoved.
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