PSEi drops 4.3% on global trade war fears

The Philippine Stock Exchange Index (PSEi) plummeted by 4.3 percent to close at 5,822.85 points on Monday, April 7, 2025, driven by fears of a global trade war following increased tariffs imposed by the US.

Mining stocks led the decline across all sectors as investors sold shares in panic, marking the biggest single-day point drop since March 14, 2022 and the highest percentage fall since June 15, 2020.

Regina Capital Development Corporation's Luis Limlingan noted that the escalating tariffs have rattled markets globally, with many anticipating further retaliatory measures from other countries.

Jonathan Ravelas of Reyes Tacandong & Co. suggested that if the Bangko Sentral ng Pilipinas (BSP) fails to cut interest rates by 25 basis points on April 10, 2025, the PSEi could drop further towards the 5,300/5,500 levels.

Despite the current bearish sentiment, Unicapital Securities' Wendy Estacio Cruz believes that as long as businesses and economies remain intact without physical war damage, the market will stabilize and stocks will recover eventually.