PHILIPPINE SHARES rallied to return above the 6,000 mark on Tuesday after US President Donald J. Trump suspended the implementation of import tariffs on Canada and Mexico.
The Philippine Stock Exchange index (PSEi) surged by 3.50% or 206.02 points to close at 6,089.06, while the broader all shares index increased by 2.35% or 83.32 points to 3,617.93.
“The local market rallied as US President Donald Trump decided to pause the planned tariffs against Canada and Mexico for 30 days,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Philippine shares finally made a furious rebound after successive sessions of selling, as the main barometer climbed back above 6,000,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. “US equities dropped on Monday as markets responded to new tariffs on imports, sparking a global sell-off. However, investor sentiment rebounded after reports of a temporary agreement between US and Mexican leaders.”
Mr. Trump on Monday suspended his threat of 25% tariffs on Mexico and Canada at the last minute, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighboring countries, Reuters reported.
Meanwhile, China on Tuesday imposed tariffs on some US imports in a swift response to new US duties on Chinese goods.
An additional 10% tariff across all Chinese imports into the US came into effect at 12:01 a.m. ET on Tuesday (0501 GMT) after Mr. Trump repeatedly warned Beijing it was not doing enough to halt the flow of illicit drugs into the United States.
Within minutes, China’s Finance Ministry said it would impose levies of 15% for US coal and liquefied natural gas and 10% for crude oil, farm equipment and a small number of trucks as well as big-engine sedans shipped to China from the United States.
China’s new tariffs on the targeted US exports will start on Feb. 10, giving Washington and Beijing some time to try and reach a deal that Chinese policymakers have indicated they hope to strike with Mr. Trump.
Foreign buying also boosted the market, Mr. Tantiangco said. Net foreign buying went down to P47.6 million on Tuesday from P695.09 million on Monday.
All sectoral indices closed in the green on Tuesday. Services jumped by 4.75% or 91.54 points to 2,014.96; financials went up by 3.93% or 85.87 points to 2,266.67; mining and oil surged by 3.41% or 236.35 points to 7,157.03; industrials rose by 2.95% or 242.35 points to 8,453.19; property climbed by 2.32% or 52.14 points to 2,295.44; and holding firms increased by 1.95% or 96.16 points to 5,011.58.
Value turnover went down to P7.35 billion on Tuesday with 700.47 million shares changing hands from the P11.37 billion with 1.26 billion issues traded on Monday.
Advancers outnumbered decliners, 124 versus 61, while 60 names were unchanged. — Revin Mikhael D. Ochave with Reuters
