Optimism regarding the renewed US-China trade talks positively impacted the local bourse on Wednesday, although the peso finished the day sideways against the US dollar.
The Philippine Stock Exchange index (PSEi) rose by 0.53 percent, closing at 6,381.32 points. All Shares also experienced a boost, increasing by 0.47 percent to 3,776.19 points.
The industrial sector led the sectoral indices with a notable increase of 0.96 percent, followed by Holding Firms at 0.91 percent, Property at 0.87 percent, Services at 0.72 percent, Mining and Oil at 0.53 percent, and Financials at 0.03 percent.
Trading volume totaled 897.37 million shares, amounting to PHP 7.14 billion. Advances outnumbered decliners, with 104 shares gaining ground compared to 91 that declined, while 44 shares remained unchanged.
“Philippine shares rebounded on optimism over US-China trade talks, which continued for a second day in London,” said Luis Limlingan, head of sales at Regina Capital Development Corp. He cited reports quoting US Commerce Secretary Howard Lutnick, indicating that the ongoing talks may extend into Wednesday (London time).
“Investors are watching for a deal that avoids steep tariffs, following last month’s temporary duty cuts,” Limlingan added. He also noted that China’s trade growth in May fell below market expectations, with a reported 4.8 percent rise in exports and a 3.4 percent drop in imports amid the US tariff rollback.
Meanwhile, the local currency, the peso, ended the day at 55.88 against the US dollar, slightly down from its previous close of 55.83. It opened the day at 55.80, showing little change from its 55.75 start on Tuesday. The peso traded within a range of 55.90 to 55.78, resulting in an average exchange rate of 55.85.
The volume of trade in the foreign exchange market reached USD 1.23 billion, an increase from the previous day’s USD 1.15 billion.