PSE index surges to 6,500 level on positive data

Stocks rallied for the third straight day on Wednesday, with the bellwether index climbing to the 6,500 level for the first time in nearly two months, as strong data improved sentiment towards the Philippine economy.

The benchmark Philippine Stock Exchange index (PSEi) surged by 1.1% or 70.74 points to close at 6,504.34, while the broader all shares index rose by 0.88% or 33.45 points to 3,817.62.

This was the PSEi’s best finish in nearly two months or since its 6,551.81 close on May 14.

“The market continued to rally backed by investors’ confidence towards the local economy,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. “This comes following the recently released economic figures, which were deemed healthy, including the labor force survey, monthly integrated survey of selected industries, and bank lending data for the month of May.”

“The PSEi gained for the third straight trading day… after US President Donald J. Trump signaled openness to trade negotiations, with possible compromise in terms of much lower tariff rates, as seen in recent months,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

He said the Philippines is “relatively insulated” from the threat of higher US import tariffs given its lower dependence on goods exports. Mr. Ricafort added that the strong data released recently affirm the country’s resilience.

Stock markets around the Asia-Pacific were mixed as investors digested Mr. Trump’s latest, shifting trade salvos, Reuters reported. Japan and South Korea are among major US trading partners in the region facing an Aug. 1 deadline to reach a trade deal or be subjected to new tariff rates, although Mr. Trump has sent mixed signals on how flexible that date is.

Only two US agreements, with Britain and Vietnam, have been reached since Mr. Trump’s April 2 “Liberation Day” reciprocal tariffs announcement roiled markets.

Majority of sectoral indices closed in the green on Wednesday. Services went up by 2.51% or 53.66 points to 2,183.89; property climbed by 2.37% or 57.61 points to 2,480.25; industrials rose by 1.08% or 98.59 points to 9,215.54; and holding firms increased by 0.93% or 52.64 points to 5,691.54.

Meanwhile, financials dropped by 0.77% or 17.44 points to 2,248.54; and mining and oil slipped by 0.05% or 4.92 points to 9,194.78.

“Bloomberry Resorts Corp. was the day’s top index gainer, jumping 5.78% to P4.76. China Banking Corp. was the worst index performer, dropping 2.32% to PHP 65.40,” Mr. Tantiangco said.

Value turnover rose to PHP 7.79 billion on Wednesday with 1.41 billion shares traded from the PHP 6.96 billion with 1.06 billion issues exchanged on Tuesday.

Advancers bested decliners, 110 versus 90, while 50 names were unchanged.

Net foreign selling increased to PHP 220.66 million on Wednesday from PHP 168.05 million on Tuesday. — Revin Mikhael D. Ochave with Reuters