LOCAL EQUITIES firmed up on Monday as reports of trade negotiations happening between the United States and China boosted investor optimism.
The benchmark Philippine Stock Exchange index (PSEi) snapped its three-day losing streak yesterday after it climbed 0.44% or 33.70 points to close at 7,675.47.
The broader all-shares index likewise gained 0.4% or 19.04 points to 4,748.97.
“Philippine markets bounced back on some trade optimism as according to Bloomberg news, US officials were preparing for a summit between President Donald Trump and Chinese Leader Xi Jinping at which a 150-page agreement could be signed,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.
Reports over the weekend stated that both sides are now in the final stages of negotiating a deal which could involve the lowering of Chinese tariffs on some US goods if Mr. Trump agrees to remove broad sanctions against Beijing. The potential meeting could happen on March 27.
From a technical standpoint, Summit Securities, Inc. President Harry G. Liu said the PSEi is tracking a long-term moving average with 7,500 as a support level.
“We would still see some reaction but I think the reaction, unless a very positive fundamental news changes the game today, we should see rallies along the way will only be within the window of 7,500 to roughly 8,000 for the moment,” Mr. Liu said in a phone interview on Monday.
Mr. Liu added that investors are still looking at how the US-China trade war plays out, alongside other global and local events such as the midterm elections and state of economic growth in the next six months.
Mining and oil was the lone counter that ended in negative territory, losing 2.51% or 210.31 points to 8,149.42.
The rest went up, led by financials which jumped 1.08% or 18.34 points to 1,701.73. Property rose 0.34% or 13.72 points to 3,939.71; holding firms gained 0.32% or 24.87 points to 7,717.84; industrials added 0.23% or 26.78 points to 11,364.79; while services eked out a gain of 0.01% or 0.27 point to 1,518.69.
Value turnover thinned to P6.21 billion yesterday after some 1.02 billion issues switched hands, compared to Friday’s P8.47 billion.
Decliners outpaced advancers, 103 to 94, while 52 names were unchanged.
Foreign investors turned net buyers, albeit at a meager amount of P80.52 million. This is compared to the previous session’s P1.64-billion worth of net outflows.
Meanwhile, Wall Street indices ended Friday’s session on a positive note. The Dow Jones Industrial Average edged higher by 0.43% or 110.32 points to 26,026.32. The S&P 500 index jumped 0.69% or 19.20 points to 2,803.69, while the Nasdaq Composite index rallied 0.83% or 62.82 points to 7,595.35. — Arra B. Francia