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Trump’s decision to delay and reduce tariffs spurred the market to rally further although profit-taking trimmed off some gains.
The main index jumped 71.48 points or 1.19 points to close at 6,077.82 with Miners leading the charge across the board. Volume surged to 951 million shares worth P13.31 billion as gainers beat losers 129 to 72 with 46 unchanged.
“Philippine and US equities rallied after former President Trump announced a temporary reduction in tariff rates to 10 percent for most countries over a 90-day period, with Canada and Mexico exempt from the additional duty,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He noted that shares continued the rebound with bargain hunters pushing the PSEi back above the 6,000 mark as market sentiment was lifted by expectations of a potential rate cut by the Bangko Sentral ng Pilipinas in its policy meeting.
Chinabank Capital Corporation Managing Director Juan Paolo Colet said “The market closed higher on the back of a relief rally in reaction to Trump's decision to temporarily pause most reciprocal tariffs, including those on the Philippines.”
“The benchmark index opened strongly in the morning, but some of those gains melted away over the trading session as investors took profits and trimmed positions to hedge against the escalating trade war between the US and China.
“Nonetheless, market optimism was partly sustained by traders placing bets that the BSP would cut its policy rate,” he added.
Rizal Commercial Banking Corporation Chief Economist Michael L. Ricafort said “a much lower 10 percent baseline US import tariff rate for exports from many countries, would somewhat mitigate US inflationary pressures than the previous higher reciprocal tariffs announced on April 2, 2025.”
He pointed out that US tariffs will have “Limited drag on Philippine GDP, as the Philippine economy is less reliant on exports as a source of economic growth.
Philippine merchandise exports are 3-5 times lower compared to major ASEAN countries on a yearly basis; but slower world economic/GDP growth due to Trump's higher US import tariffs/reciprocal tariffs/other protectionist measures could also indirectly weigh on the Philippine economy.”
“Slower Philippine economic growth would support further local policy rate cuts, as a function of future Fed rate cuts for the coming months,” he added.
