Share prices rose in active trade on Wednesday after the US announced a tariff relief for car makers and a potential deal out of its tariff negotiations soon.
The PSEi gained 102.80 points or 1.64 percent to close at 6,354.99.
The broader All Shares rose 41.07 points or 1.11 percent to 3,272.30.
Gainers outnumbered losers 100 to 77, with 70 stocks unchanged. Trading value topped P8.28 billion.
“Philippine shares were bought up as investors repositioned for May, with many investors trading on optimism that the White House would release a possible trade deal to calm the market,” Luis Limlingan, managing director at Regina Capital and Development Corp., said.
Overnight, US Commerce Secretary Howard Lutnick said he had reached a deal with one foreign power that should permanently ease the reciprocal tariffs US President Donald Trump plans to impose.
Lutnick declined to identify the country, saying the deal was pending local approvals.
Claire Alviar, analyst at Philstocks Financial Inc., said Philippine shares followed “positive cues from Wall Street amid a major trade deal announced by the US.”
In his latest partial reversal of tariff policies, Trump agreed overnight to give carmakers two years to boost the percentage of domestic components in vehicles assembled domestically.
The move will allow them to offset tariffs for imported auto parts used in US-assembled vehicles equal to 3.75 percent of the total value of the Manufacturer’s Suggested Retail Price of vehicles they build in the US through April 2026, and 2.5 percent of US production through April 30, 2027.
The developments helped ease some investor worries about the erratic trade policies of Trump as the president visited Michigan, a cradle of the US auto industry, just days before a fresh set of 25 percent import taxes was set to kick in on automotive components, Reuters reported.
Alviar said many investors took the opportunity to buy stocks at bargain levels.
“Additional Fitch Ratings’s decision to affirm the Philippines investment grade BBB rating with a stable outlook added to the positive sentiment,” she said.
Most actively traded Bank of the Philippine Islands gained P7 to P140. Metropolitan Bank and Trust Co. rose P4.70 to P76.90. SM Prime Holdings Inc. climbed P1.45 to P24.35. SM Investments Corp. advanced by P15 to P870. Ayala Land Inc. firmed P0.85 to P25.05. Ayala Corp. increased by P24.50 to P599.50. Jollibee Foods Corp. added P4.80 to P228.80. Bloomberry Resorts Corp. firmed P0.01 to P3.41. However, BDO Unibank Inc. shed P0.30 to P160.40, and International Container Terminal Services Inc. dropped P9.80 to P340.20. –With a report from Reuters.
