The Philippine Stock Exchange index (PSEi) fell Wednesday, struggling to stay above the 6,400 level due to selling pressure.
The PSEi shed 34.30 points, or 0.54 percent, to close at 6,378.56. The broader all-shares index, however, edged up 2.37 points, or 0.06 percent, to 3,768.58.
“Philippine investors sold ahead of the May Consumer Price Index, which is slated for release on June 5. Many investors are awaiting the final print before making any decisions,” said Luis Limlingan, head of sales at Regina Capital Development Corp.
Four of six sectoral indices closed lower, led by mining and oil, which declined 0.99 percent. Financials dropped 0.93 percent, while the property and industrial sectors dipped 0.79 percent and 0.54 percent, respectively.
In contrast, services rose 0.35 percent, and holding firms advanced 0.09 percent.
Value turnover reached P5.81 billion, with 115 gainers, 78 decliners, and 48 unchanged names.
Bloomberry Resorts Corp. continued its rally, closing 2.23 percent higher at P5.05 per share on optimism about the company’s electronic gaming app. Conversely, SM Prime Holdings Inc. dipped 2.75 percent to P22.95.
Asian shares broadly extended a global rise on Wednesday following data indicating the U.S. economy remained resilient. South Korean equities and the won stood out after the election of a new president ended months of political paralysis.
Speculation that presidents Donald Trump and Xi Jinping would speak this week stoked optimism for a potential easing of U.S.-China tensions, though Trump indicated in a social media post his counterpart was “hard to make a deal with.”
Jenniffer B. Austria with AFP
The US leader’s ramped-up tariffs on aluminum and steel imports — announced Friday — kicked in Wednesday, highlighting the uncertainty caused by the White House’s off-the-cuff policies.
Traders in Asia took the baton from a positive Wall Street, where all three main indexes were lifted by data showing US job openings unexpectedly rose in April, calming worries about the impact of Trump’s tariff blitz on the world’s number one economy.
The reading came ahead of crucial non-farm payrolls figures Friday, which are closely followed by the US Federal Reserve as it maps monetary policy in light of weak growth and fears of tariff-fueled inflation.
“Growth is sputtering, the second half looks increasingly cloudy, and everyone knows the Fed’s rate-cut cavalry will ride in eventually. It’s already priced, already scripted — no one’s shocked by the plot twist unless, of course, inflation proves stickier than expected,” said Stephen Innes at SPI Asset Management.
“But what’s genuinely keeping equities ticking higher is the soft hum of hope — that US-China tensions could thaw into something warmer than their current frosty detente,” Innes said.
He added that the risk of tariffs, “once a terrifying monster, now looks more like a toothless terrier’s wag, comforting investors enough to hold their ground despite the global economy’s chills”.
Traders are awaiting further developments on the China-US front after White House officials said the two nations’ leaders could talk this week, even after Trump accused Beijing of violating last month’s detente that slashed tit-for-tat tariffs.
However, the US president wrote on social media in a late-night post that while he was fond of Xi, he suggested he was a tough negotiator.
“I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” he posted on his Truth Social platform.
Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Wellington, Taipei, Mumbai and Jakarta all rose, while Paris and Frankfurt continued their Tuesday advances. London was flat.
Seoul rallied more than two percent — pushing into a bull market after rising more than 20 percent from its recent low in April — as Lee Jae-myung won South Korea’s snap presidential election. The won gained around 0.8 percent.
The poll was called after the impeachment of predecessor Yoon Suk Yeol over his brief martial law attempt and ended six months of political turmoil in the country.
It has also raised hopes that Lee will introduce fresh measures to boost the export-dependent economy, which faces a hefty hit from Trump’s tariffs, particularly the huge levies on steel and aluminum.
In Lee’s inauguration speech on Wednesday, the new president warned protectionism posed a threat to the country’s “survival”.
On the campaign trail, Lee said Seoul needed to start tariff negotiations with Washington “immediately” but also stressed there was no need to “rush” a deal. With AFP
