PSEi up on extended trade talks, rate cut bets

Local stocks rose for a second straight session on Tuesday, buoyed by extended talks between the US and trade partners including the Philippines, as well as expectations of a dovish policy stance from the Bangko Sentral ng Pilipinas (BSP).

The Philippine Stock Exchange Index (PSEi) added 0.13% or 8.36 points to close at 6,433.6. The broader all-share index rose 0.11% or 4.24 points to 3,784.17.

“The local market extended its rise as investors continued to cheer the extension of the US reciprocal tariff deadline to Aug. 1, giving the Philippines more time to strike a trade deal with the US,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

On Monday, US President Donald J. Trump signed an executive order moving the effectivity of reciprocal tariffs to Aug. 1 from the original July 9 deadline.

Starting Aug. 1, the US will impose varying tariffs — 25% on Japan, South Korea, Tunisia, Malaysia and Kazakhstan; 30% on South Africa and Bosnia and Herzegovina; 32% on Indonesia; 35% on Serbia and Bangladesh; 36% on Cambodia and Thailand; and 40% on Laos and Myanmar.

Shares also rose as the market was lifted by expectations of another policy rate cut by the Philippine central bank.

“Local shares closed higher, lifted by dovish expectations on the Bangko Sentral ng Pilipinas’ policy stance following soft June inflation data,” said Luis A. Limlingan, head of sales at Regina Capital Development Corp.

June inflation accelerated slightly to 1.4% from 1.3% in May, but below 3.7% a year earlier.

The BSP has cut interest rates twice this year, with the policy rate now at 5.25% after the latest 25-basis-point reduction on June 19.

Sectoral performance was mixed. Services rose 0.77% to 2,130.23, while holding firms gained 0.65% to 5,638.9.

On the other hand, mining and oil slipped 0.43% to 9,199.7, financials dropped 0.35% to 2,265.98, property shed 0.26% to 2,422.64, and industrials edged down 0.01% to 9,116.95.

Universal Robina Corp. led index gainers with a 4.33% jump to P94. ACEN Corp. was the biggest decliner, falling 2.26% to PHP 2.60.

Trading value dropped to PHP 6.96 billion from PHP 7.8 billion on Monday. Winners beat losers 104 to 96, while 56 stocks were unchanged.

Net foreign selling stood at PHP 168.05 million, reversing the PHP 107.24 million net inflow on Monday. — Revin Mikhael D. Ochave