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PSEi buoyed by Wall Street gains

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PSE BGC bells

Local equities climbed on Tuesday, July 10, tracking the positive finishes of its global counterparts.

The bellwether Philippine Stock Exchange index (PSEi) firmed up 0.65% or 46.67 points to 7,233.29 on Tuesday, while also slightly recovering from a thin value turnover in the previous session. The broader all shares index likewise gained 0.64% or 28.14 points to 4,413.44.

“Positive momentum from strength in the US markets last night helped prop up the local index today…The Dow Jones notably gained 320 points last night to close above its 50-day moving average for the first time in a few weeks (a positive sign in technical analysis) on the back of strong economic data amid trade war fears,” Papa Securities Corp. Trader Gabriel Jose F. Perez said in an email.

Wall Street rallied on Monday, lifted by the financial and services sectors after the release of strong economic data, allaying fears of the rising trade war between the United States and China.

The Dow Jones Industrial Average soared 1.31% or 320.11 points to 24,776.59, while the S&P 500 index rose 0.88% or 24.35 points to 2,784.17. The Nasdaq Composite index also posted an uptick of 0.88% or 67.82 points to 7,756.20.

Most Asian indices mirrored Wall Street’s positive performance, as fears of the trade war took a back seat. Japan’s Nikkei 225 was up 0.66% or 144.71 points to 22,196.89, while the MSCI AC Asia Pacific jumped 1.17% or 1.91 points to 165.82.

Back home, all sectors ended in positive territory, led by financials which jumped 1.24% or 21.95 points to 1,795.96. Industrial went up 0.67% or 68.45 points to 10,299.50; services rose 0.52% or 7.34 points to 1,419.08; mining and oil added 0.45% or 42.75 points to 9,603.02; holding firms ended 0.39% or 27.48 points higher to 7,078.34; while property inched up 0.1% or 3.6 points to 3,556.73.

Some 5.06 million issues switched hands, valued at P5.06 billion, much higher than the P3.38-billion turnover seen in the previous session.

Advancers outpaced decliners, 113 to 73, while 54 issues were unchanged. Eleven of the 20 most actively traded stocks rose on Tuesday, led by Metropolitan Bank & Trust Co., which added 1.4% to P68.80 each, and Ayala Corp., gaining 2.04% to P924 apiece.

Foreign investors remained in a net selling position, albeit thinner at P509 million compared to Monday’s P730-million net foreign outflows. — Arra B. Francia