PSEi ends firmer after overnight uptick on Wall St

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The main PSEi closed marginally higher in mixed trading Wednesday, cued by the overnight uptick on Wall Street.

It was a “quiet” climb as investors began to assess the market impact of President Donald Trump’s executive orders during his first day in office, said Luis Limlingan, managing director at Regina Capital and Development Corp.

The Philippine Stock Exchange index (PSEi) was slightly up 8.13 points or 0.13 percent at 6,348.34. 

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The broader All Shares index was down 1.71 points or 0.05 percent at 3,698.53. 

Decliners led advancers 103 to 73 while 65 stocks traded unchanged. Trading turnover reached P4.68 billion. 

Limlingan noted that investors were likewise encouraged by Trump’s trade remarks which were softer than expected. 

Investors also got a respite from their concerns over the potential tariff impositions according to stockbroker First Metro Securities Corp.

The peso closed at 58.51 to the dollar, down from 58.49 on Tuesday. The currency opened at 58.35, hitting a high of 58.35 and a low 58.605. Trading turnover reached $1.59 billion.  

Malaysia ‘s currency hit a six-week high and stocks advanced for a fourth straight session on Wednesday ahead of a central bank policy decision, while a gauge of emerging Asian equities reversed course weighed by China on US tariff plans.

President Trump said his administration was discussing a 10 percent punitive duty on Chinese imports. 

The Malaysian ringgit rose 0.7 percent to 4.440 per dollar, its highest level since mid-December ahead of Bank Negara Malaysia ‘s (BNM) monetary policy decision.

The central bank is expected to keep its benchmark interest rate unchanged at 3 percent for the 10th consecutive meeting, a Reuters poll showed.

“External developments remain the main focus for the MYR, especially those related to the US and China,” analysts at Maybank said.

Brian Tan, economics research head for Asian emerging markets excluding China at Barclays, drew attention to BNM’s quarter-point rate cut in May 2019, which immediately followed Trump’s comments on tariff hike on Chinese imports.

Tan said he would expect the BNM “to again respond in a similarly quick fashion, likely at the very next monetary policy meeting, to cut its policy rate by 25 basis points, once the next US administration unveils significant tariffs.”

In Singapore, traders await the Monetary Authority of Singapore’s (MAS) first policy decision of 2025 later this week. Economists are split on whether the central bank will loosen policy or leave its settings unchanged to assess Trump’s policies.

Singapore’s dollar fell 0.2 percent. Indonesia’s rupiah was unchanged.

Indonesia’s chief economic minister said on Tuesday it will require natural resource exports to hold all their proceeds onshore for at least one year — a move that could boost the country’s annual foreign exchange reserves by $90 billion.

The plans underscore “concerns about recent weakness in the rupiah.” said Tan Jing Yi, market economist at Mizuho Bank. 

Rupiah has lost more than 1.4 percent in value this year, becoming the worst performing currency in the region so far.

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Most actively traded BDO Unibank Inc. dropped P1.50 to P142.50. Universal Robina Corp. was down P1.50 at P64.50. Jollibee Foods Corp. declined P2 to P245. International Container Terminal Services Inc. rose P5 to P395. Ayala Land Inc. was steady at P25.50. Manila Electric Co. rose P7 to P500. SM Investments Corp. was up P8 to P845. —With additional report from Reuters

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