PSEi jumps to 6,400 level after PHL-US tariff deal
SHARES jumped on Wednesday, with the main index breaching the 6,400 level and hitting an over one-week high, after the Philippines secured a slightly lower “reciprocal” import tariff rate from the United States.
The benchmark Philippine Stock Exchange index (PSEi) rose by 1.67% or 106.56 points to close at 6,462.25, while the broader all shares index increased by 1.33% or 50.15 points to 3,807.35.
This was the PSEi’s highest close in over a week or since it ended at 6,525.04 on July 14.
“The market seemed to have taken positively the US-Philippines trade deal announced by President Donald J. Trump, wherein the tariff rate set on Philippine exports was marginally brought down from 20% to 19%,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
“PSEi ended with a strong showing after the recently concluded negotiations between the US and the Philippines despite a minimal reduction on the initial 20% tariff,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.
The new tariff rate — which was still higher than the 17% announced by Mr. Trump in April — came at the close of President Ferdinand R. Marcos, Jr.’s three-day state visit to Washington.
As part of the deal, Mr. Marcos said the Philippines will increase its imports of soy, wheat products, and medicines from the US. Mr. Trump also requested that certain markets be opened, including the automobile sector.
“Investors also cheered the peso’s appreciation against the US dollar this Wednesday,” Mr. Tantiangco added.
The peso strengthened by 16.9 centavos to close at P56.881 versus the dollar on Wednesday, which was also its best finish in over a week or since it ended at P56.73 on July 15.
All sectoral indices closed higher on Wednesday. Services surged by 5.84% or 125 points to 2,264.35; mining and oil went up by 2.08% or 191.78 points to 9,391.19; holding firms improved by 1.34% or 72.31 points to 5,469.51; financials climbed by 0.47% or 10.73 points to 2,259.63; industrials jumped by 0.43% or 39.82 points to 9,179.93; and property inched up by 0.36% or 8.61 points to close the session at 2,399.87.
“Bloomberry Resorts Corp. was the day’s index leader, jumping 7.19% to P4.62. Bank of the Philippine Islands was the main index laggard, falling 1.56% to P125.80,” Mr. Tantiangco said.
Value turnover increased to P10.18 billion on Wednesday with 1.94 billion shares traded from the P5.01 billion with 1.07 billion shares that changed hands on Tuesday.
Advancers outnumbered decliners, 128 versus 71, while 49 names closed the session unchanged.
Net foreign buying was at P181.16 million on Wednesday, a turnaround from the P14.67 million in net selling recorded on Tuesday. — Revin Mikhael D. Ochave
