THE index showed big gains on Friday, June 1, bucking negative global sentiment on potential trade wars with investors going on bargain hunting.
The bellwether Philippine Stock Exchange Index (PSEi) closed at 7,630.26, up by 133.09 or 1.78%, while the all-shares index closed at 4,638.72, up by 50.43 points or 1.10%.
“Despite the negativity from US markets last night from the US imposing steel and aluminum tariffs on the European Union (EU), Canada, and Mexico, the index traded in the green the entire day and finished with a 133-point gain to close at 7,630.26,” Gabriel F. Perez, trader at Papa Securities Inc. said in an e-mail message. He added that investors probably waited for the “uncertainty that went with MSCI’s implementation to clear.”
The EU and Canada have vowed to impose their own tariffs on specific US products after the US government announced that it would put duties on steel and aluminum products from the EU, Canada, and Mexico.
The Trump administration announced that EU companies would face a 25% duty on steel and 10% duty on aluminum. EU Commission President Jean-Claude Juncker has said that the EU will retaliate.
Canadian prime minister Justin Trudeau has also announced a like-for-like imposition of tariffs on US products including orange juice, and other food products.
“Investors turned to the Philippines for bargain hunting after a month that saw the index slide more than 4% for the month. While other regions seemed more risky due to volatility, the Philippines was viewed as a safe haven,” Luis T. Limlingan, head of sales at Regina Capital Development Corp, said in a message.
Services and mining and oil posted declines. Services closed at 1,471.76, down by 9.55 points or 0.65%, while mining and oil closed at 9,941.47, down by 80.13 points or 0.80%.
Financials ended at 1,889.76, up by 23.10 or 1.24%; industrial at 10,854.17, up by 96.26 or 0.90%; holding firms at 7563.60, up by 234.07 or 3.19%; and property at 3,778.18, up by 22.88 or 0.61%.
Total value traded was P5.56 billion. Advancers outnumbered losers 101 to 89, while 46 were unchanged. — Patrizia C. Marcelo