PSEi hits 2.5-year low amid trade war fears

The Philippine Stock Exchange Index (PSEi) plunged by 4.3 percent to close at 5,822.85 points, its lowest in two-and-a-half years, due to investor panic over escalating global trade wars.

This marks the PSEi's biggest single-day point drop since March 14, 2022.

Luis Limlingan of Regina Capital stated that the increase in tariffs rattled markets globally and raised concerns about further retaliation.

Peter Garnace of Unicapital Securities Inc. attributed yesterday's massive selloff to China's retaliatory tariffs announced last Friday, a response to US President Donald Trump's newly imposed tariffs.

He added that these escalating trade tensions have fueled market speculation about a potential global recession or stagflation.

All sectors ended in the red, with Mining and Oil experiencing the biggest losses, plummeting by 8.75 percent.

The Philippine peso also slumped back to the 57-to-$1 level amid these rising global economic concerns.