PSEi climbs past 8,000 on US-China deal hopes
By Arra B. Francia, Senior Reporter
THE MAIN INDEX clawed its way back to the 8,000 level on Wednesday, rising along with the rest of the world on hopes of a trade deal between the United States and China.
The benchmark Philippine Stock Exchange index (PSEi)jumped 1.19% or 94.97 points to close at 8,017.01 yesterday. The broader all-shares index likewise advanced 0.76% or 37.07 points to 4,882.57.
“Philippine stocks surged as investors increased bets on a trade deal after President Trump announced a meeting with Xi Jinping at the G20 summit. Hopes of easier monetary policy also lifted sentiments,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.
US President Donald Trump confirmed he will be meeting with Chinese President Xi Jinping at the G20 Summit in Japan at the end of the month to discuss a possible trade deal. He, however, noted that the agreement between both sides must be fair.
The announcement comes amid Mr. Trump’s threats that he will impose tariffs on another $300 billion worth of Chinese goods if they fail to strike a trade agreement. This will come on top of tariffs already imposed on $200 billion worth of Chinese goods.
This prompted a positive reaction from Wall Street, as the Dow Jones Industrial Average racked up 1.35% or 353.01 points to 26,465.54. The S&P 500 index edged higher by 0.97% or 28.08 points to 2,917.75, while the Nasdaq Composite also rallied 1.39% or 108.86 points to 7,953.88.
Asian markets also got a boost from hopes of the renewed trade deal.
Back home, all sectoral indices were in positive territory, led by holding firms which soared 1.39% or 105.34 points to 7,656.44.
Property climbed 1.38% or 58.88 points to 4,321.44; services rose 1.19% or 19.98 points to 1,698.87; financials went up 1% or 17.18 points to 1,732.11; mining and oil gained 0.53% or 37.97 points to 7,157.34; while industrials firmed up 0.25% or 29.19 points to 11,690.28.
Some 1.33 billion issues valued at P7.30 billion switched hands, lower than Wednesday’s P7.96 billion.
Advancers outpaced decliners, 106 to 81, while 53 names were unchanged.
Foreign investors switched to a net selling position at P26.43 million, versus the previous session’s net inflow worth P173.55 million.
“Events to watch out for now would be the decision of two central banks — the Fed’s which would come out very early in the morning tomorrow, and our very own BSP (Bangko Sentral ng Pilipinas) in the afternoon,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail.
The US Federal Reserve was set to conclude a two-day meeting earlier in the day, while the BSP will meet this afternoon to review its own policy settings.
