PSEi climbs to 7,900 to track Wall Street’s gain

By Arra B. Francia, Reporter

THE MAIN INDEX breached the 7,900 level on Monday, tracking Wall Street’s gains last Friday.

The 30-company Philippine Stock Exchange index (PSEi) climbed 0.53% or 42.45 points to close at 7,915.63. The broader all- shares index likewise rose 0.41% or 19.97 points to end at 4,866.96.

“Several factors may have influenced the index’s move today, namely: US indices continuing to close in the green last Friday night, Trump calling on the Fed to cut rates, and some late reaction to March’s below-expectation inflation figure (3.3% vs. 3.5% consensus),” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail on Monday.

The PSEi tracked the positive performance seen in Wall Street last Friday. The Dow Jones Industrial Average went up 0.15% or 40.36 points to 26,424.99. The S&P 500 index rallied 0.46% or 13.35 points to 2,892.74, while the Nasdaq Composite index advanced 0.59% or 46.91 points to 7,938.69.

This came after US President Donald J. Trump’s plea to the Federal Reserve last Friday to cut interest rates in order to boost the economy.

Meanwhile, Asian markets ended mixed as they digested better-than-expected jobs data in the United States alongside reports on progress between the US-China trade war. US government data released last Friday showed that it added 196,000 jobs in March, beating economists’ forecast of 175,000 jobs.

Despite this, Japan’s Nikkei 225 slipped 0.21% or 45.85 points to 21,761.65. The Shanghai Composite went down 0.05% or 1.76 points to 3,244.81, while the Kospi Index eked out gains of 0.04% or 0.99 points to 2,210.60.

Eagle Equities, Inc. Research Head Christopher John Mangun attributed Asian markets’ performance to fears of a “tough US earnings season,” while noting that the PSEi continues to move sideways.

“The main index continues sideways within our range. Investors are still on the sidelines and may remain there due to the shortened trading week,” Mr. Mangun said in an e-mail.

Four sectoral indices moved to positive territory, led by services which jumped 1.41% or 22.50 points to 1,613.97. Industrials gained 0.64% or 75.45 points to 11,816.43; holding firms advanced 0.51% or 40.10 points to 7,772.96; while property added 0.44% or 17.91 points to 4,092.98.

In contrast, mining and oil dropped 0.24% or 18.65 points to 7,715.64, while financials dipped 0.13% or 2.37 points to 1,739.80.

Some 679.44 million issues valued at P5.40 billion switched hands on Monday, higher than the P5.04-billion turnover seen last Friday.

Advancers slightly outpaced decliners, 107 to 91, while 50 names were unchanged.

Foreign investors remained in a net buying position at P496.59 million, up from the P455.77 million in net purchases seen in the previous session.

Financial markets are closed today in commemoration of Araw ng Kagitingan (Day of Valor).