Philippine stocks posted modest gains Wednesday as investors downplayed the impact of “zero-remittance week”, which is being floated by supporters of former president Rodrigo Duterte, on the economy.
The bellwether Philippine Stock Exchange index, inched up by 6.20 points, or 0.10 percent, to close at 6,166.05, while the broader all-shares index climbed 19.53 points, or 0.53 percent, to settle at 3,676.71.
China Bank managing director Juan Paolo Colet said the zero remittance week would unlikely have material impact on the economy.
“At the end of the day most OFWs will not let political issues get in the way of sending funds to their families and loved ones in the Philippines,” Colet said.
Bank of the Philippine Islands lead economist Emilio Neri Jr. said the assuming that OFWs would push through with the planned boycott, this would have an impact on the economy in terms of current account deficit, foreign exchange and domestic growth.
The peso slid to 57.69 against the US dollar Wednesday, from 57.60 on Tuesday.
“But this is a very big ‘if’’. We also don’t know if the people calling for a boycott represents our OFWs,” Neri said.
He also noted that bulk of remittances comes from United States and Middle East. He said OFWs send money for their families in the Philippine to pay housing and car mortgages and tuition fees.
Among the sectors, services climbed the most, rising by 1.7 percent, followed by mining and oil which rose 1.42 percent. Property and holding firms declined by 2.13 percent and 0.48 percent, respectively.
Value turnover reached P4.53 billion, with 92 advancers and 11 decliners.
Manila Electric Co. jumped 4.38 percent to P548, while SM Prime Holdings Inc. declined 3.85 percent to P22.50.
Meanwhile, lingering hopes that Donald Trump’s planned tariff blitz next week will not be as painful as feared lifted most Asian markets Wednesday, though uncertainty about the president’s policies and the US economy tempered optimism.
With the White House’s “Liberation Day” on April 2 approaching, investors have been bracing for a wave of sweeping levies on imports amid warnings of crippled global trade, recession and a fresh spike in inflation.
But suggestions from Trump and others in Washington that the measures could be more targeted, with some countries hit harder than others, have provided a sliver of hope that the worst-case scenario can be avoided.
The president told Newsmax that “I don’t want to have too many exceptions” but added: “I’ll probably be more lenient than reciprocal, because if I was reciprocal, that would be very tough for people”.
Signs of a less severe approach helped Wall Street record two successive days of gains, paring hefty losses suffered in recent weeks fueled by fears that the hardball US policies would hit companies’ bottom lines.
Hong Kong battled to edge higher a day after tanking more than two percent on profit-taking and selling in the tech sector, while Tokyo, Sydney, Seoul, Singapore, Bangkok, Manila and Wellington also advanced.
Jakarta jumped more than three percent after a hefty sell-off this year fueled by worries over the Indonesian economy. However, the country’s rupiah remained stuck around its lowest levels since the Asian financial crisis at the end of the last century.
London, Paris and Frankfurt rose at the open.
Shanghai was flat while Taipei and Mumbai edged down.
Copper futures traded on New York’s Comex exchange touched a record high after Trump said he could impose duties on imports of the commodity within weeks.
While there is some hope over tariffs, Americans’ fears about the economic outlook indicated the United States could be in for a bumpy ride.
The Conference Board’s closely watched gauge of consumer confidence dived to its lowest level since 2021 — during the pandemic — as concerns grow over higher prices.
Meanwhile, another reading on expectations for the next six months hit a 12-year low.
The figures come as the Federal Reserve re-evaluates its monetary policy in light of Trump’s tariffs agenda, with some analysts warning it might have to hold off any interest rate cuts this year.
At the end of a volatile first quarter, Charu Chanana, chief investment strategist at Saxo, said it had “challenged conventional thinking”.
“While rate cut hopes dominated headlines early in the year, markets moved on quickly as economic resilience, sector rotation, geopolitical shifts, and regional divergences took centre stage,” she wrote in a commentary.
“Trade policy returned to focus as the US election narrative picked up. Even without concrete tariffs, the potential for disruption hit sentiment across global sectors.”
There was little major reaction to news that Russia and Ukraine had agreed to halt military strikes in the Black Sea and on energy sites following talks brokered by Washington.
The Kremlin said the deal could come into force only after the lifting of restrictions on its agriculture sector. With AFP