PHILIPPINE STOCKS went up on Monday as US President Donald J. Trump exempted some technology products from import tariffs.
The Philippine Stock Exchange index (PSEi) climbed by 1.03% or 63.08 points to close at 6,145.52, while the broader all shares index rose by 0.16% or 6.13 points to 3,627.89.
“The local market started its shortened trading week on a positive note as investors cheered the US’ move to temporarily exempt consumer electronics from its reciprocal tariffs,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Hopes of further policy easing by the Bangko Sentral ng Pilipinas (BSP) this year also helped in lifting the market.”
Foreign buying also lifted the market, he added. Net foreign buying increased to P174.58 million on Monday from P48.04 million on Friday.
“Philippine shares traded slightly in the green as investors weighed the impact of Mr. Trump’s 90-day tariff reprieve while digesting the recent BSP decision to cut rates by 25 basis points (bps),” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.
US Commerce Secretary Howard Lutnick said on Sunday that smartphones, computers and some other electronics, just exempted from steep tariffs on imports from China, would face separate new duties along with semiconductors within the next two months, Reuters reported.
Mr. Lutnick said Mr. Trump would enact “a special focus-type of tariff” on smartphones, computers and other electronics products in a month or two, alongside sectoral tariffs targeting semiconductors and pharmaceuticals. He said those new levies would fall outside Mr. Trump’s so-called reciprocal tariffs, under which levies on Chinese imports climbed to 125%.
Beijing increased its own tariffs on US imports to 125% on Friday, striking against Mr. Trump’s tariffs. China said on Sunday that it was evaluating the impact of the exclusions for the technology products implemented late on Friday.
Meanwhile, the BSP on Thursday resumed its easing cycle, delivering a widely expected 25-bp cut to bring the policy rate to 5.5%.
BSP Governor Eli M. Remolona, Jr. signaled further reductions this year to be delivered in “baby steps” or in 25-bp increments, with the Monetary Board unlikely to cut at every policy meeting.
Almost all sectoral indices ended higher on Monday. Services went up by 2.24% or 43.05 points to 1,957.04; property rose by 1.73% or 37.69 points to 2,212.86; industrials increased by 1.25% or 107.24 points to 8,632.30; holding firms climbed by 0.83% or 42.09 points to 5,108.06; and mining and oil added 0.73% or 69.35 points to end at 9,575.38.
Meanwhile, financials dropped by 0.51% or 12.28 points to 2,376.
Value turnover dropped to P4.32 billion on Monday with 557.88 million shares traded from the P6.84 billion with 532.72 million issues exchanged on Friday.
Advancers beat decliners, 106 versus 83, while 49 names were unchanged. — Revin Mikhael D. Ochave with Reuters
