LOCAL EQUITIES extended gains on Thursday on hopes that the United States and China will resolve their trade dispute.
The 30-member Philippine Stock Exchange index (PSEi) firmed up 0.46% or 34.68 points to finish at 7,522.92, closing on a positive note for the third straight session. The broader all-shares index likewise added 0.28% or 12.78 points to 4,507.33.
“The continued optimism that the US and China may be able to find a way to resolve their trade war has had a positive effect on global equities markets including here in the PSE,” Eagle Equities, Inc. Research Head Christopher John Mangun said in an e-mail.
“The PSEi sustained its positive momentum from yesterday and if it can keep on its path, it may end above 7,500 for the week.”
The local market has been mirroring the performance of global indices in previous weeks, closely watching the developments of the US-China trade war.
The Dow Jones Industrial Average advanced 0.64% or 157.03 points to 24,527.27. The S&P 500 index rose 0.54% or 14.29 points to 2,651.07, while the Nasdaq Composite index also rallied 0.95% or 66.48 points to 7,098.31.
Meanwhile, Regina Capital Development Corp. Managing Director Luis A. Limlingan noted that investors were also awaiting the result of the Bangko Sentral ng Pilipinas’ (BSP) last policy meeting for the year.
“Investors are also betting on the outcome of the BSP wherein more are inclined that our central bank will apply the brakes this time with respect to interest rates,” Mr. Limlingan said in a mobile message.
The central bank kept its benchmark rates steady during its last policy meeting for the year, ending the streak of five consecutive hikes this year.
The BSP’s key overnight borrowing rate remains at 4.75%. Meanwhile, the overnight lending and deposit rates stood at 5.25% and 4.25%, respectively.
“Our view is that headline inflation has peaked and should continue to decelerate due to favorable base effects, legislated measures that aim to resolve food supply shortage issues, the suspension of fuel tax hikes, and lower global energy prices,” Mr. Limlingan explained.
Four sectoral indices climbed, led by financials which jumped 1.27% or 22.52 points to 1,788.11. Services followed with a 1.06% uptick or 14.87 points to 1,412.36. Holding firms rose 0.53% or 39.84 points to 7,444.88, while industrials went up 0.34% or 37.15 points to 10,876.94.
In contrast, the mining and oil counter lost 0.86% or 72.58 points to 8,280.58, while property shed 0.38% or 13.94 points to 3,648.62.
Turnover was halved to P6.09 billion from the previous session’s P11.90 billion, with 2.70 billion issues switching hands
Advancers outnumbered decliners, 109 to 80, while 46 names were unchanged.
Foreign investors turned buyers, booking net purchases of P324.84 million against Wednesday’s P984.70 million worth of net sales. — Arra B. Francia