PSEi jumps to 2-month high on bargain hunting

Philippine stocks bounced back on Monday to snap a two-day losing streak as investors picked up bargains as they await developments on the country’s tariff negotiations with the United States.

The Philippine Stock Exchange index (PSEi) jumped by 1% or 65.16 points to close at 6,525.04, while the broader all shares index climbed by 0.52% or 19.83 points to 3,832.36.

This was the PSEi’s best finish in two months or since it ended at 6,551.81 on May 14.

“The local market bounced back as investors hunted for bargains following two straight days of decline,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The market’s rise is also seen to reflect hopes that a trade deal between the Philippines and the US would be reached before Aug. 1,” he added.

US President Donald J. Trump last week increased the planned reciprocal import tariff on Philippine goods to 20% from the 17% announced in April. The Philippines is hoping to negotiate for a lower US tariff rate ahead of the Aug. 1 deadline. Trade Secretary Ma. Cristina A. Roque and other officials will return to Washington this week to hold talks on tariffs, while President Ferdinand R. Marcos, Jr. is set to visit Washington on July 20-22.

“Investors in the Philippines shrugged off the latest development regarding the tariffs of the Trump administration to close higher,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

On Saturday, Mr. Trump threatened to impose a 30% tariff on imports from the European Union (EU) and Mexico, effective Aug. 1, after weeks of negotiations with major US trading partners failed to yield comprehensive trade agreements, Reuters reported.

In response, the EU said on Sunday it would extend its suspension of countermeasures to US tariffs until early August and continue to press for a negotiated settlement.

All sectoral indices closed higher on Monday. Mining and oil increased by 2.95% or 280 points to 9,746.73; holding firms went up by 2.18% or 122.95 points to 5,744.06; property rose by 0.96% or 23.70 points to 2,476.72; services climbed by 0.33% or 7.30 points to 2,202.44; industrials went up by 0.2% or 19 points to 9,244.49; and financials edged up by 0.1% or 2.24 points to 2,240.49.

“JG Summit Holdings, Inc. was the day’s index leader, jumping 6.3% to PHP 21.95. Bloomberry Resorts Corp. was the main index laggard, falling 4.84% to PHP 4.52,” Mr. Tantiangco said.

Value turnover declined to PHP 6.5 billion on Monday with 2.3 billion shares traded from the PHP 9.45 billion with 4.4 billion issues that changed hands on Friday.

Advancers and decliners were evenly split at 97 each, while 67 names were unchanged.

Net foreign buying increased to PHP 632.24 million on Monday from PHP 62.47 million on Friday. — Revin Mikhael D. Ochave with Reuters