Share prices rose on Thursday as investors cheered the surprise reprieve US President Donald Trump extended to most trade partners over his reciprocal tariffs.
A key rate cut announced yesterday by the Bangko Sentral ng Pilipinas also buoyed investor sentiment.
The Philippine Stock Exchange index (PSEi) bounced at the opening bell to hit the 6,100 level before gains were pared at the close. This drove the benchmark index 71.48 points up to close at 6,077.82, or 1.19 percent higher.
The broader All shares index added 40.14 points, or 1.12 percent, to end at 3,622.94.
Gainers outnumbered losers 129 to 72, with 46 stocks unchanged. Trading turnover reached P13.31 billion.
“The Philippine market extended its rebound from Tuesday after Trump hit the pause button on reciprocal tariffs for 90 days to allow time for negotiations,” said Alfred Benjamin Garcia, head of equity research at AP Securities Inc.
“Local stocks were also buoyed by optimism that the BSP will cut rates,” he added.
All sectors closed in the positive territory, with mining stocks taking the lead, up 6.45 percent, online stock trading platform Philstocks Financial Inc. said.
Luis Limlingan, managing director at Regina Capital and Development Corp., said that overnight, Trump announced that he was temporarily pegging tariff rates for most US trade partners at 10 percent within the 90-day period while increasing the levy on Chinese imports to 125 percent, in response to China’s retaliatory move.
Trump, in a post on his social media account, Truth Social, said the decision was made after considering the more than 75 countries that called on US representatives to open negotiations.
At the close of trade, the BSP announced it was cutting the overnight interest rate by another 25 basis points to 5.5 percent.
“This was anticipated amid manageable inflation and level of the peso,” said Jonathan Ravelas, managing director at eManagement for Business and Marketing Service.
Ravelas said investors, however, should continue to watch the developments in the Trump space.
Most actively traded SM Investments Corp. gained P50 to P800. BDO Unibank Inc. shed P3.70 to P154.30. International Container Terminal Services Inc. declined by P8 to P340. Bank of the Philippine Islands gained P1.50 to P133. Ayala Land Inc. closed up P0.50 at P580. Ayala Corp. rose P20 to P580. Manila Electric Co. gained P5 to P555. Metropolitan Bank and Trust Co. climbed P2.30 to P72.30. Jollibee Foods Corp. shed P2.40 to P214.80. Converge ICT Solutions Inc. firmed P0.20 to P18.
