PHILIPPINE SHARES surged to the 6,300 level on Wednesday on easing trade tensions and after Fitch Ratings affirmed the country’s investment-grade rating.
The bellwether Philippine Stock Exchange index (PSEi) rose by 1.64% or 102.80 points to close at 6,354.99, while the broader all shares index increased by 1.11% or 41.07 points to end at 3,727.30.
This was the PSEi’s highest close in almost two months or since it ended at 6,360.77 on March 10.
Philippine financial markets are closed on May 1 (Thursday) for Labor Day.
“The local bourse jumped… following positive cues from Wall Street amid a major trade deal announced by the United States. Many investors also took the opportunity to buy stocks at bargain levels,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message. “Additionally, Fitch Ratings’ decision to affirm the Philippines’ investment-grade “BBB” rating with a stable outlook added to the positive sentiment.”
“The PSEi extended its gains today, supported by strong first quarter earnings from several index heavyweights and a backdrop of easing global trade tensions,” DragonFi Securities, Inc. Equity Research Analyst Jarrod Leighton M. Tin added in a Viber message.
US President Donald J. Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday with a mix of credits and relief from other levies on materials, and his trade team touted its first deal with a foreign trading partner, Reuters reported.
In his latest partial reversal of tariff policies, the Republican president agreed to give carmakers two years to boost the percentage of domestic components in vehicles assembled domestically.
Meanwhile, US Commerce Secretary Howard Lutnick told CNBC he had reached a deal with one foreign power that should permanently ease the “reciprocal” tariffs Mr. Trump plans to impose.
Majority of sectoral indices closed higher on Wednesday. Property climbed by 3.54% or 79.59 points to 2,323.42; financials rose by 2.67% or 64.32 points to 2,466.03; holding firms went up by 1.54% or 81.54 points to 5,347.01; and industrials increased by 0.57% or 50.91 points to 8,980.77.
Meanwhile, mining and oil fell by 1.25% or 125.65 points to 9,873.68 and services dropped by 1.13% or 22.28 points to 1,943.57.
Value turnover jumped to P8.28 billion on Wednesday with 727.49 million shares traded from the P4.88 billion with 622.80 million issues exchanged on Tuesday.
Advancers bested decliners, 100 versus 77, while 70 names were unchanged.
Net foreign buying increased to P986.27 million on Wednesday from P275.68 million on Tuesday.
“The PSEi is now approaching its key resistance level at 6,400. With this in mind, we may see some profit-taking or consolidation in the near term as the market gauges whether it has enough momentum to break above this level or retrace toward its 20-day moving average near 6,150,” Mr. Tin said. — Revin Mikhael D. Ochave with Reuters
