PHILIPPINE STOCKS inched up on Tuesday to snap their three-day losing streak as investors searched for bargains and amid the 90-day extension of the tariff truce between the United States and China.
The benchmark Philippine Stock Exchange index (PSEi) rose by 0.56% or 35.49 points to close at 6,289.85, while the broader all shares index went up by 0.42% or 16.02 points to 3,751.27.
“The local market bounced back this Tuesday as investors hunted for bargains following three straight days of decline. The local bourse also joined many of its regional peers in cheering the extended tariff truce between the US and China,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
The United States and China have extended a tariff truce for another 90 days, staving off triple-digit duties on each other’s goods as US retailers get ready to ramp up inventories ahead of the critical end-of-year holiday season, Reuters reported.
The new order prevents US tariffs on Chinese goods from shooting up to 145%, while Chinese tariffs on US goods were set to hit 125% — rates that would have resulted in a virtual trade embargo between the two countries. It locks in place — at least for now — a 30% tariff on Chinese imports, with Chinese duties on US imports at 10%.
“The prospect of two more policy rate cuts from the Bangko Sentral ng Pilipinas (BSP) for this year helped in lifting sentiment,” Mr. Tantiangco added.
BSP Governor Eli M. Remolona, Jr. reiterated on Monday his outlook for two more reductions this year, with the first one likely to be announced at the Monetary Board’s Aug. 28 meeting. The policy rate is currently at 5.25%.
“The PSEi closed at 6,289.85, up by 0.56%, as today’s market was driven by bargain hunting as investors took advantage of recent days of decline, positioning ahead of potential catalysts,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Market participants remain on the lookout for fresh developments that could sustain momentum in the coming sessions, with sentiment still cautious amid lingering US economic and Philippine corporate updates.”
Almost all sectoral indices closed higher. Holding firms went up by 1.14% or 59.70 points to 5,259.27; mining and oil jumped by 0.9% or 83.41 points to 9,347.03; property increased by 0.83% or 20.21 points to 2,428.51; services climbed by 0.76% or 17.63 points to 2,337.17; and industrials rose by 0.04% or 3.89 points to 8,915.79. Meanwhile, financials slipped by 0.28% or 5.97 points to 2,126.24.
Value turnover increased to P13.73 billion on Tuesday with 756.75 million shares traded from the P7.1 billion with 908.82 million shares exchanged on Monday.
Advancers beat decliners, 105 versus 84, while 53 names were unchanged.
Net foreign buying decreased to P239.51 million on Tuesday from P421.37 million on Monday. — Revin Mikhael D. Ochave with Reuters