PH shares up on news of tariff exemptions
The local bourse showed a slight recovery on Wednesday, returning to the 5,800 level, after investors reacted positively to news that over $1 billion worth of the Philippines’ agricultural exports to the United States got spared from import tariffs.
The Philippine Stock Exchange index went up by 0.99 percent or 57.05 points to close at 5,813.71.
The broader All Shares also logged a small gain of 0.63 percent or 20.29 points to 3,251.84.
Among the key sectors, only mining and oil recorded losses.
Philstocks financial research manager Japhet Tantiangco, however, said trading remained “lethargic,” with net value turnover at P5.36 billion.
“The local market rose as investors cheered the exemption of most of the Philippines’ agricultural exports from the US’ 19-percent reciprocal tariff, as mentioned by DTI Secretary Ma. Cristina Roque,” he said.
In an executive order, US President Donald Trump had decided to junk the reciprocal tariff on certain agricultural products that cannot be produced in large quantities stateside. These include coffee, cocoa, bananas, tomatoes and beef.
Given this, nearly half of the Philippines’ exports to the United States will now be tariff-free, according to Trade Undersecretary Ceferino Rodolfo.
These include coconut, fruit juices, processed pineapples, desiccated coconuts, bananas, frozen tuna fillets, rice wafer products and confectionery products as well as dried guavas, mangoes and mangosteen.
The potential rate cut from the central bank likewise provided added optimism, according to Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp.
