PSEi hits near two-month high on upbeat data

The Philippine Stock Exchange index (PSEi) extended its winning streak for a third straight session on Wednesday, gaining 70.74 points or 1.1 percent to finish at 6,504.34 – its highest close since 14 May and among the strongest levels in the past six months.

The main index also bounced back from its intraday low of 6,438.62 as it tracked mostly upbeat economic data and shrugged off looming external risks tied to global trade tensions.

Michael Ricafort, chief economist of Rizal Commercial Banking Corporation, attributed the continued climb to signs of economic resilience and the local market's relative insulation from potential fallout over new US tariffs.

“After US President Trump signaled no extension for the new trade deals deadline on August 1, 2025, though signaled openness to trade talks; the Philippines is seen as relatively insulated versus higher US tariffs since Philippine goods exports are 3-5 times lower compared to more developed ASEAN economies and the local economy could be more resilient given its lower dependence on goods exports unlike other export-driven ASEAN economies,” Ricafort said.

He also pointed out that the country’s growth is mainly supported by consumer spending, overseas Filipino worker remittances, BPO revenues, and foreign tourism receipts – all of which have remained robust and less affected by external tariff shocks.

Market sentiment was further buoyed by a string of positive domestic indicators including strong employment figures, manufacturing output, bank lending growth, and higher gross international reserves. Ricafort noted that the recently implemented Capital Market Efficiency Promotion Act (CMEPA), which lowered stock transaction taxes starting 1 July, also helped attract more investors.

Policy tailwinds such as recent cuts in interest rates and reserve requirement ratios, along with a higher budget deficit target to support fiscal expansion, contributed to the market’s optimistic outlook.

In the foreign exchange market, the peso traded relatively steady, opening at 56.55 against the US dollar and closing slightly weaker at 56.57. The weighted average stood at 56.571, according to data from the Bankers Association of the Philippines.