Bargain hunting continued to rule trading for the second straight day as the market digested the impact of the US’ trade war with partners.
The Philippine Stock Exchange index (PSEi) closed 3.5 percent higher with a 206.02-point gain at 6,089.06.
The broader All Shares index rose 83.32 points or 2.36 percent to 3,617.93.
Gainers edged losers 124 to 61, with 60 stocks unchanged. Trading turnover reached P7.35 billion.
“The local market rallied as US President Donald Trump decided to pause the planned tariffs against Canada and Mexico for 30 days,” stockbroker Philstocks Financial Inc., said.
Luis Limlingan, managing director at Regina Capital and Development Corp., said the stock market “finally made a furious rebound” on Tuesday, noting that it managed to return to the 6,000 level.
Limlingan said investors disregarded for now the reported decision of China to impose a 15 percent tariff on US coal and liquefied natural gas (LNG) effective Monday in response to the US’ own tariff to China exports.
The peso closed at 58.34 to the dollar, gaining strength from 58.66 on Monday. The currency opened at 58.45, hitting a strong 58.28, and its weakest at 58.555. Trading turnover reached $2.13 billion.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., cited the appreciation of the peso, coinciding with the dollar’s correction vis-a-vis major global currencies from a three-week high.
Currencies in developing nations traded mixed as investors scrambled to keep up with a tit-for-tat escalation of a global trade war between the world’s two largest economies – China and the US.
US President Donald Trump paused the imposition of 25 percent tariffs against Mexico and Canada after leaders of the two countries said they would boost border enforcement efforts.
Meanwhile, the President’s press secretary confirmed that Trump would speak with his Chinese counterpart Xi Jinping soon.
China responded to the new US tariffs with a probe into Alphabet-owned Google and put retaliatory levies on a slew of US products just after the US tariffs kicked in.
On the PSE, most actively traded China Banking Corp. dropped P1 to P92, while International Container Terminal Services Inc. closed up P26 at P367. SM Investments Corp. gained P17 to P786. BDO Unibank Inc. rose P7.50 to P144.50. Bank of the Philippine Islands ended P4.30 higher at P124.30. Universal Robina Corp. firmed P0.05 to P57.95. Ayala Land Inc. added P0.60 to P24.60. PLDT Inc. climbed P40 to P1,350.