Philippine stocks rose Wednesday ahead of a new round of tariffs to be announced by US President Donald Trump under his so called “Liberation Day.”
The 30-company Philippine Stock Exchange index advanced 66.96 points, or 1.08 percent, to close at 6,247.68, while the broader all-shares index climbed 27.24 points, or 0.74 percent, to reach 3,705.12.
“Philippine shares traded in the green as the market saw mixed results after Eid’l Fitr. The US market continued to face pressure from tariff policies and weak economic data,” Regina Capital Development Corp. head of sales Luis Limlingan said.
Analysts said the investor sentiment was also boosted by hopes that March inflation remained low, giving the Bangko Sentral ng Pilipinas more room to cut interest rates.
Value turnover, however, remained thin at P5.07 billion, below the year-to-date average of P5.30 billion. Foreigners were net sellers, with net outflows at P259.87 million.
Among the sectors, only the industrials ended in the red, declining 0.38 percent. The financials gained the most, rising 2.86 percent, followed by mining and oil and services, advancing by 1.58 percent and 1.2 percent, respectively.
Gainers edged losers, 110 to 82. Monde Nissin Corp. was the top index gainer for the day, jumping 4.7 percent to P7.57, while Jollibee Foods Corp. was at the bottom, falling 3.67 percent to P231.20.
Asian equity markets were also mixed Wednesday, as nervous investors brace for Trump’s wave of tariffs later in the day, with speculation about what he has in store stoking uncertainty on trading floors.
Equities have been battered leading up to the US president’s announcement — which he has dubbed “Liberation Day” — with warnings that friend and foe are in the crosshairs after what he says is years of “ripping off” the United States.
He has trailed the measures for weeks, initially suggesting they would match whatever levies other countries impose.
But US media reported he has also considered either blanket 20 percent levies or another plan where some countries get preferential treatment.
Sweeping auto tariffs of 25 percent announced last week are also due to come into effect on Thursday.
The White House has said Trump will unveil his decision at 4:00 pm in Washington (2000 GMT), after Wall Street markets close, with the Republican promising a new “golden age” of US industry.
However, officials admitted he was still ironing out the details late Tuesday.
Analysts said the ongoing uncertainty was spooking markets.
“Investors and company management dislike uncertainty, and the piecemeal, unreliable way in which tariff announcements are being delivered is creating plenty of it,” said Oliver Blackbourn and Adam Hetts at Janus Henderson Investments in a commentary.
“Estimates on what the average tariff rate will look like range from a few percentage points in moderate outcomes to double-digit levels in more forceful scenarios,” they added.
“What does seem less uncertain is that tariffs are, without much exception, likely to be bad for economic growth, consumers, and markets.”
Pepperstone Group’s Chris Weston said the suggestion that the tariffs would be effective immediately would provide some sort of certainty, even if it limited the scope for talks.
“This scenario — while hardly a positive for economics or earnings assumptions — would increase the conviction behind how we respond to the ‘facts’,” he explained.
“That said, life is never straightforward, and we will still need to consider the counter response from other countries.”
The planned duties have ramped up fears of a global trade war after several countries warned they were lining up their responses.
With that in mind, economists have warned that economic growth could take a hit and inflation reignite, dealing a blow to hopes that central banks would continue cutting interest rates.
Asian markets skittered between gains and losses through the day.
Tokyo, Shanghai, Sydney, Wellington, Taipei, Manila, Mumbai and Bangkok rose, while Singapore, Seoul slipped with London, Paris and Frankfurt. Hong Kong barely moved.
Safe haven gold held above $3,100 after touching a record high $3,149.00 on Tuesday.
HSBC strategists led by Max Kettner warned Wednesday might not mark the end of the tariff uncertainty.
“We’d argue the potential is in fact higher for the 2 April deadline to introduce even more uncertainty — and hence prolonged broad-based weakness in leading indicators,” they said.
Chinese tech giant Xiaomi dropped three percent in Hong Kong, extending Tuesday’s fall of more than five percent after the firm confirmed one of its electric vehicles was involved in an accident in China that left three people dead. With AFP
