PSEi jumps to one-month high on tariff reprieve

PHILIPPINE STOCKS rallied to a one-month high on Thursday as US President Donald J. Trump delayed the implementation of planned tariffs on automobiles.

The Philippine Stock Exchange index (PSEi) surged by 1.6% or 98.19 points to close at 6,219.96 on Thursday, while the broader all shares index climbed by 0.94% or 34.56 points to 3,699.10.

This was the first time the PSEi closed at the 6,200 level and was also the stock benchmark’s best finish in a month or since it ended at 6,241.97 on Feb. 6.

“The local bourse extended its gains as investors digested cooler-than-expected consumer price index data and a one-month tariff delay for automakers under the US-Mexico-Canada Agreement, fueling hopes for further exemptions despite trade policy uncertainties,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Mr. Trump will exempt automakers from his punishing 25% tariffs on Canada and Mexico for one month as long as they comply with existing free trade rules, the White House said on Wednesday, Reuters reported. Mr. Trump is also open to hearing about other products that should be exempted from the tariffs, which took effect Tuesday, the White House said.

Meanwhile, Philippine headline inflation slowed to 2.1% in February from 2.9% in January, the government reported on Wednesday. This was the lowest in five months or since 1.9% in September 2024 and was below the central bank’s 2.2%-3% estimate.

“The local market closed positively this Thursday as investors continued to appreciate the significant slowdown in the Philippines’ inflation rate last February. Investors also cheered the local currency’s appreciation against the US dollar,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

On Thursday, the peso closed at a near five-month high of P57.32 per dollar, inching up by 2.5 centavos from its P57.345 finish on Wednesday, Bankers Association of the Philippines data showed.

All sectoral indices rose on Thursday. Mining and oil surged by 3.58% or 294.42 points to 8,514.79; services jumped by 2.66% or 51.72 points to 1,994.06; property climbed by 1.86% or 41.73 points to 2,274.42; holding firms went up by 1.51% or 78.11 points to 5,238.80; financials rose by 1.01% or 23.59 points to 2,338.97; and industrials increased by 0.82% or 71.36 points to 8,767.42.

“International Container Terminal Services, Inc. was the top index gainer, climbing 5.64% to P356. Converge ICT Solutions, Inc. was the worst index performer, dropping 1.73% to P17.08,” Mr. Tantiangco said.

Value turnover went down to P6.88 billion on Thursday with 631.03 million issues traded from the P7.35 billion with 588.42 million stocks exchanged on Wednesday.

Advancers beat decliners, 108 versus 82, while 59 names were unchanged. Net foreign buying stood at P319.48 million on Thursday versus the P106.02 million in net selling recorded on Wednesday. — Revin Mikhael D. Ochave with Reuters