The Philippine stock market, along with the rest of Asia, plunged Wednesday as Donald Trump was elected US president, in a stunning upset with major implications for the world economy.
The Philippine peso retreated to 48.59 against the US dollar, weakening to a fresh seven-year low.
The Philippine Stock Exchange Index sank 188.76 points, or 2.6 percent, to 7,119.04 on a value turnover of P8.6 billion. Losers overwhelmed gainers, 154 to 43, with 36 issues unchanged.
First Grade Finance Inc. president and managing director Astro del Castillo said the major sell-off could make the PSEi attractive again to foreign funds.
“The markets were in a panic mode. The region experienced a major sell off today in anticipation of a Trump presidency. Global investors opt for Clinton. The shock also reverberated in our local market. Almost everyone was racing for the exits,” Del Castillo said.
“We are still confident that our economy will be able to absorb such uncertainty from the US,” he added.
Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said regional currencies, including the peso, fell on renewed risk aversion surrounding market surprise in early results showing a Trump victory.
“Market cautiousness on possible retreat of the Fed from a December hike because of this market reaction is weighing on regional currencies,” Tetangco said.
“We will continue to closely monitor developments and provide liquidity to the market as needed to address market price action on renewed global political risk,” he said.
Ayala Land Inc. dropped 4.8 percent to P34, while parent Ayala Corp. tumbled 4.9 percent to P790.
Universal Robina Corp., the biggest snack food maker, skidded 6.8 percent to P172.50, while GT Capital Holdings Inc. of tycoon George Ty lost 3.3 percent to P1,320.
The dollar, meanwhile, tumbled against the yen and the euro. The Mexican peso also fell to a record low as safe-haven assets soared, with gold rising more than five percent and German government bonds rallying.
Fears about the impact on financial markets led Japanese and South Korean authorities to call crisis talks.
Initial confidence that market favorite Hillary Clinton would win vanished as results showed the firebrand tycoon picking up the major scalps needed to take the White House.
After he won a swathe of states, Clinton called Trump to concede, handing him the keys to the White House.
Markets have been plunged into turmoil as Clinton was considered by many investors 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.
“It’s been a bloodbath in the markets over the last few hours with the Mexican peso suffering particularly,” said Craig Erlam, senior market analyst at OANDA. With AFP, Julito G. Rada and Jenniffer B. Austria