Philippine Stocks Discount to Asian Peers is Biggest in 16 Years

Philippine stocks are trading at their steepest discount to regional peers since 2009, as the Trump administration’s shifting tariff policies add to concerns over the export-reliant economy.

The benchmark Philippines Stock Exchange PSEi Index has dropped about 7% since its high in May, the worst performing major equity gauge in Asia during the period, as foreign investors pulled out. The gauge is trading at around 9 times forward earnings, compared with 16 times for the MSCI Asia Pacific Index.

The valuation discount may remain as concerns have been growing over the potential tariff that Washington might levy on Philippine semiconductor ...