• PH stocks jolted by Trump win

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    PSEi slumps 2.58% to close at 7,119.04 pts

    Share prices on the Philippine bourse tumbled on Wednesday in line with the global market plunge as billionaire populist Donald Trump won the just concluded US presidential election.

    The benchmark Philippine Stock Exchange index (PSEi) hit an intraday low of 7,000 points before closing at 7,119.04, losing 2.58 percent or 188.76 points. The broader All Shares index fell 1.88 percent or 81.87 points to 4,282.35.

    “Right now, there’s immediate panic. The market will have to consolidate. We need to wait for a few days, but if the index breaks the current support [7,000], the next support will be 6,800,” Summit Securities Inc. President Harry Liu said in a phone interview.

    Global slide

    Other financial markets around the world reacted to Trump’s win with a sell-off, sending stocks down across Asia and Europe and billions of dollars wiped off the value of investments. The dollar tumbled against the yen and the euro as Trump defeated market favorite Hillary Clinton in a stunning upset with major implications for the world economy.

    Many investors considered Clinton to be a safer bet than Trump, who is seen as a loose cannon with policies many fear could wreck the world’s number-one economy.

    Mexicans, fearing Trump’s vow to build a wall to cut America off from its southern neighbor, were dismayed and their peso fell to historic lows.

    As Europe awoke to a stark and unwelcome reality, London’s benchmark FTSE 100 index shed 1.87 percent, Frankfurt’s DAX 30 slid 2.9 percent and the Paris CAC 40 index dropped 2.8 percent.

    Gold soared more than 5 percent, while fears about the impact on financial markets led Japanese and South Korean authorities to each call crisis talks.

    In Manila, “futures also dropped almost 500, so this trend created concern among the investing public,” Summit’s Liu said.

    Mid-term pressure

    Liu expects the financial markets to enter a consolidation phase, with a negative bias moving forward on concern over the uncertainty that lies ahead.

    Forecasts for the PSEi of between 7,600 and 7,800 points at the close of 2016 could still be “possible and probable” because “the drop is not coming from us,” he said.

    There is pressure for the market to stage a rally in the medium term, he said, “and the long term is hurting now. But looking at the country’s fundamentals – as can be observed from the PSEi’s bounce from 7,000 to 7,100 during the session – I think we’ll still be able to recover,” he added.

    The mining and oil index was the sole gainer among the various sectors, while the rest declined, led by the property index with a 3.47 percent plunge.

    Security Bank Corp. was the sole advancer among the actively traded stocks, while the others retreated, including Ayala Land Inc., Metrobank, Universal Robina Corp., Ayala Corp., SM Prime Holdings Inc. and International Container Terminal Services Inc.

    Turnover volume totaled 1.97 billion shares, valued at P8.58 billion.

    Decliners outnumbered advancers 154 to 43, while 36 issues closed unchanged.

    with AFP

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    2 Comments

    1. President Trump’s U.S. domestic economic and foreign policies are going to favor the Philippines. The 4 million PhilAms and millions of OFWs in the U.S. will have higher pay, therefore send more money home. If the false idea of strong peso=strong Philippines finally ends and the peso will settle arouns 55-60:1 vs the U.S.$, it will mean much much more competitive exports from the Philippines for our domestic export companies. And it also results in more employment. In addition, the OFW remittances will be 20-30% higher in peso(!!!!) which will also stimulate our economy, bcoz of higher domestic demand for goods and services. All in all – aside of the forever present pinoy corruption – the Filipino People will still greatly benefit from Trump’s business minded, no nonsense approach.

    2. Trump is anti immigrant and a pro rich president. He will try his best to get the jobs abroad and bring it back to the US. The worst that will be hit is China. He said he will impose a 45 percent tariff on imports from China.. Trump hates China and all Middle Eastern countries because he thinks that these countries are taking away the monies from America. He may be right but this is a global economy and not USA world economy. He said that he will decrease by 30 to 35 percent income taxes. If he will accomplish these promises, RP will be affected. Our BPO million plus jobs will be gone in a few months. I am sure that Trump will entice these investors by zero to minimal taxes that will make it cheaper to do business in the US.