PSEi to take cue from PH-US tariff talks

All eyes will be on President Marcos’ meeting with US President Donald Trump this week, the results of which will be the main mover of the local bourse.

Wendy Estacio-Cruz, research head at Unicapital Securities Inc., said traders were mostly optimistic, especially after the benchmark stock index closed higher last week.

“The visit aims to secure a mutually beneficial tariff deal with the US, address the 20-percent tariff on Filipino exports and strengthen ties in economic and defense matters,” Cruz said.

The Philippines was initially given a 17-percent tariff before the 90-day pause, but Trump eventually raised this to 20 percent, alarming various sectors.

This is one of the lowest in Southeast Asia, following Indonesia’s 19 percent.

Tariff anxiety was the main reason behind the Philippine Stock Exchange Index’s 2.42-percent week-on-week drop to 6,303.72.

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Bargain-hunting failed to offset the decline, which was also due to mid-week losses and uncertainty attributed to a potential online gaming ban.

Trading platform 2TradeAsia.com stressed that domestic growth could offer support, with US tariffs likely to have only a “limited drag” on the country’s gross domestic product.

Cruz sees the index moving within the 6,300 to 6,400 range.