Philippine shares rallied on Wednesday as positive investor sentiment toward the US-Philippine tariff deal gained further momentum from market expectations of another interest rate cut next month.
The benchmark Philippine Stock Exchange index (PSEi) jumped 106.56 points, or 1.68 percent, to close at 6,462.25. The broader All Shares advanced 50.15 points or 1.33 percent to end at 3,807.35.
The market welcomed the announcement of a 19 percent tariff rate on Philippine exports to the US — a percentage point lower than the initially proposed 20 percent — which analysts said was modest but still better than expected.
“The market ended with a strong showing after the trade talks concluded between the US and the Philippines, despite the minimal reduction from the original 20 percent tariff,” Luis Limlingan, managing director at Regina Capital Development Corp., said.
Gainers outpaced losers, 128 to 71, while 49 stocks closed unchanged. Total turnover reached P10.18 billion, with 1.94 billion shares traded across 70,459 transactions.
Foreign investors were net buyers of local equities, posting net inflows of P181.16 million. Total foreign buying stood at P2.55
billion versus P2.37 billion in foreign selling.
Investors shrugged off initial expectations of a muted market response to the US tariff announcement.
On Tuesday night (Wednesday morning in Manila), US President Donald Trump announced via social media that a 19 percent duty would be imposed on Philippine goods, while American exports to the Philippines would enter tariff-free.
“General sentiment improved due to the slight reduction in tariffs,” Alfred Benjamin Garcia, head of research at AP Securities Inc., said.
Adding to the upbeat mood was Finance Secretary Ralph Recto’s signal that the Bangko Sentral ng Pilipinas (BSP) could cut interest rates by as much as 50 basis points before the year ends.
“Market hopes are now anchored on a potential 25 basis point cut as early as the next BSP rate-setting meeting on August 28,” Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said.
