Shares slip as focus shifts to US tariff deadline

Philippine stocks slipped on Wednesday as market focus turned to the Trump administration’s July 9 tariff deadline.

The main Philippine Stock Exchange index (PSEi) edged down by 0.07% or 4.80 points to close at 6,419.05, while the broader all shares index slipped by 0.06% or 2.45 points to 3,796.91.

“The local market pulled back as global trade uncertainties weigh on sentiment. This comes as the deadline of trade negotiations with the United States draws near, with no deals established leading to the imposition of reciprocal tariffs,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“Investors also digested the latest comments from the Federal Reserve stating that [US President Donald J.] Trump’s tariffs are a hindrance to their policy easing. On a positive note, losses were trimmed at the last minute, allowing the market to maintain its ground above 6,400,” he added.

Mr. Trump said he was not considering extending the deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India, Reuters reported.

Fed Chair Jerome H. Powell, under fire from Mr. Trump to cut rates immediately, reiterated that the US central bank plans to “wait and learn more” about the impact of tariffs on inflation before lowering interest rates.

Traders are pricing in about 64 basis points of cuts this year from the Fed, with the odds of a move in July at 21%.

The US’ planned “reciprocal” tariffs have been paused for 90 days until July 9, but a 10% blanket rate remains in effect.

“Philippine shares stayed afloat above the 6,400 level as investors maintained a cautious stance, closely monitoring the market ahead of Friday’s inflation report for signals on future economic conditions,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.

Sectoral indices closed mixed on Wednesday. Mining and oil went down by 2.04% or 198.79 points to 9,513.42; financials decreased by 0.97% or 22 points to 2,246.86; and services fell by 0.21% or 4.65 points to 2,154.93.

On the other hand, property rose by 0.6% or 14.63 points to 2,454.67; industrials increased by 0.46% or 42.55 points to 9,107.31; and holding firms edged up by 0.26 point to 5,618.25.

“GT Capital Holdings, Inc. was the day’s index leader, climbing 4.53% to PHP 635. Puregold Price Club, Inc. was the main index laggard, falling 2.78% to PHP 34.95,” Mr. Tantiangco said.

Value turnover went up to PHP 7.77 billion on Wednesday with 792.46 million shares traded from the PHP 7.69 billion with 1.35 billion issues exchanged on Tuesday.

Decliners outnumbered advancers, 111 versus 76, while 67 names were unchanged.

Net foreign buying declined to PHP 258.04 million on Wednesday from PHP 969.71 million on Tuesday. — Revin Mikhael D. Ochave with Reuters