MANILA – Fears over escalating US tariff measures and cautious sentiment ahead of key US economic data sent both the Philippine Stock Exchange index (PSEi) and the peso lower on Tuesday.

The PSEi slipped 1 percent to 6,459.47 points, while the broader All Shares index declined by 0.65 percent to 3,807.27.

All sectoral indices closed in the red, led by Holding Firms which dropped 1.88 percent. Property fell 1.71 percent; Mining and Oil, 0.97 percent; Services, 0.71 percent; Financials, 0.21 percent; and Industrial, 0.11 percent.

Market activity posted a total volume of 1.65 billion shares worth PHP5.9 billion. Advancers narrowly outpaced decliners, 98 to 96, while 56 issues were unchanged.

“Philippine shares weakened as investors responded to the tariff threats from President Donald Trump, as many analyzed whether any measures would likely be softened through negotiations,” said Luis Limlingan, head of sales at Regina Capital Development Corporation.

He added that investors are closely monitoring other tariff developments, including new levies imposed on the European Union and Mexico, alongside expectations for US inflation data that could signal broader economic implications.

Meanwhile, the peso weakened further for the second straight session, closing at 56.73 to the US dollar from 56.63 the previous day. It opened at 56.70 and traded between 56.81 and 56.67, with an average of 56.74. Total trading volume reached USD1.28 billion.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the peso’s decline to multiple factors, including the continued strengthening of the US dollar, falling global oil prices, and market caution ahead of the US inflation report and the Federal Reserve’s policy decision later this month.

Ricafort projected the peso’s immediate two-week support range to be between 56.35 and 56.45. (PNA)