Investors to take cue from Trump moves on tariffs

Investors will remain cautious over US President Trump’s tariff moves this week, with the Philippine Stock Exchange index (PSEi) seen trading within 6,000 to 6,400.

Market watchers have been on the lookout with any developments related to the tariffs as these are seen to greatly affect the global economy.

“Investors are still expected to monitor the developments on the global trade frictions initiated by the US’ tariff policies. Positive developments mainly on trade negotiations are expected to boost market sentiment,” Philstocks Financial Inc. senior analyst Japhet Tantiangco said.

On Apr. 2, Trump announced a minimum 10-percent tariff on all products entering the US shores, a move that is seen to fuel a trade war. His recent announcements, however, indicate a softening stance on the matter, providing some relief for the investors.

Despite geopolitical tensions, 2TradeAsia said that PSEi has managed to stay above 6,000 territory as investors drew optimism from recent reports of strong corporate earnings.

Among the companies that disclosed their financial reports last week were Philippine Airlines, BDO Unibank Inc., Balai Ni Fruitas Inc. and Shakey’s Pizza Asia Ventures Inc.

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“Selective accumulation in quality names, especially those with visible earnings growth in the medium term, remains appropriate,” the online stock broker said.

2TradeAsia said that a benign inflation trajectory, increased public spending amid the elections and capital spending by the private sector would continue to support the local equities as well.