Share prices settled slightly higher on Tuesday, with investors drawing confidence from stronger Philippine jobs data in May and brushing off the latest escalation in the US trade war.
The benchmark Philippine Stock Exchange index (PSEi) rose 0.13 percent, or 8.36 points, to close at 6,433.60. The broader All Shares added 4.24 points, or 0.11 percent, to 3,784.17.
Trading ended with 104 gainers, 96 losers and 56 issues unchanged. Turnover reached P6.96 billion on 71,706 trades involving 1.06 billion shares.
Foreign funds were net sellers, offloading P168.04 million in shares. Foreign buying stood at P3.08 billion, while foreign selling hit P3.25 billion.
Investors took a cue from the latest Labor Force Survey, which showed the country’s unemployment rate dipped to 3.9 percent in May—an improvement from 4.1 percent in April and in the same month last year.
“The lower unemployment rate provided some positive sentiment and encouraged selective buying,” Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said.
Luis Limlingan, managing director at Regina Capital Development Corp., said bargain hunting from Monday sustained some momentum as investors priced in dovish policy expectations following softer-than-expected inflation for June.
“Investors also downplayed the near-term impact of US tariff threats after former President Donald Trump announced new import duties effective August 1, pending trade negotiations,” Limlingan added.
Japhet Tantiangco, senior research analyst at Philstocks Financial Inc., noted that markets remained calm despite the White House’s recent moves, which gave the Philippines and other affected countries more time to negotiate trade terms.
“Investors are banking on the extended window (for the Philippines) to strike a deal with the US,” Tantiangco said.
Overnight, Trump signed an executive order extending the expiration of certain tariff rates to August 1. Letters sent to at least 14 countries warned of steeper duties ahead unless new trade terms are reached—including both major trading partners and smaller suppliers. (With a report from Reuters)
