PSEi rises to 6,400 on rate cut bets, delayed tariffs

Philippine stocks advanced on Monday as investor sentiment was lifted by expectations of further local interest rate cuts and after the US delayed the implementation of its planned reciprocal tariffs to Aug. 1.

The bellwether Philippine Stock Exchange Index (PSEi) rose 0.46% or 29.67 points to 6,425.24, while the broader all-share index added 0.4% or 15.22 points to 3,779.93.

“The local market closed higher, backed by dovish expectations on the Bangko Sentral ng Pilipinas’ (BSP) policy outlook following June’s weak inflation print,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“Investors also digested the US decision to move the reciprocal tariff implementation to Aug. 1 for those who have not struck a trade deal with the country yet,” he added.

On Friday, Finance Secretary Ralph G. Recto said lower-than-expected June inflation gives the central bank more room to continue its policy easing.

Inflation rose to 1.4% in June from 1.3% in May but slowed from 3.7% a year earlier.

Last month, the BSP delivered a second straight 25-basis-point cut, bringing the policy rate to 5.25%.

US President Donald J. Trump on Sunday said the higher tariff rates would take effect on Aug. 1 as the US was nearing several trade pacts.

Mr. Trump imposed a 10% baseline tariff on all US imports effective April 1 to “level the playing field” by automatically applying tariffs equal to what US exports face abroad. On April 9, tariff rates were adjusted to 11–50% for 57 countries. On April 10, it hiked China’s tariff to 125% after retaliation.

“Philippine shares closed slightly above the 6,420 level, ahead of upcoming employment and industrial data to be released today,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message.

Most of the market’s sectoral indices closed higher. Financials gained 0.87% or 19.82 points to 2,274.12, while services increased 0.79% or 16.67 points to 2,113.88.

Property went up 0.74% or 17.84 points to 2,429.03, while industrials climbed 0.46% or 42.29 points to 9,118.44.

On the other hand, mining and oil dropped 2.31% or 219.30 points to 9,239.67, while holding firms slipped 0.006% or 0.31 point to 5,601.96.

Puregold Price Club, Inc. was the top index gainer, climbing 3.27% to PHP 36.30, while Globe Telecom, Inc. was at the bottom, falling 3.87% to PHP 1,639, Mr. Tantiangco said.

Value turnover rose to PHP 7.8 billion with 911.7 million shares traded from PHP 6.62 billion covering 1.12 billion issues exchanged on Friday.

Losers beat winners 100 to 96, while 66 stocks were unchanged. Net foreign buying retreated to PHP 107.24 million from PHP 295.82 million on Friday. — Revin Mikhael D. Ochave