PSE index inches higher ahead of US-China talks
By Arra B. Francia, Senior Reporter
THE MAIN INDEX eked out gains on Monday as investors remained cautious ahead of Washington and Beijing’s discussions on their trade relations.
The benchmark Philippine Stock Exchange index (PSEi) added 0.06% or 5.11 points to close at 8,060.58. In contrast, the broader all-shares index slumped 0.1% or 5.27 points to 4,922.54.
“Today our market traded in green amid hopes of a US-China trade deal or at least preliminary agreements between the two that would lead to one in the upcoming G20 summit,” Philstocks Financial, Inc. Research Associate Japhet Louis O. Tantiangco said in a text message on Monday.
US President Donald J. Trump and Chinese President Xi Jinping are scheduled to meet during the G20 summit in Japan by the end of the month, where they are expected to come up with a deal that would resolve their trade dispute.
Mr. Trump earlier said officials from both sides will meet prior to the G20 summit.
“There was profit-taking however in the final minutes which left the local bourse with thin gains for the day. This shows that most investors are still uncertain with the ongoing geopolitical tensions abroad which is why they chose to book gains as early as possible rather than hold their positions,” Mr. Tantiangco added.
Papa Securities Corp. Sales Associate Gabriel Jose F. Perez also attributed the PSEi’s movement to anticipation of a trade deal.
“A lack of immediate catalysts continue to dampen excitement for the PSEi — with investors possibly still looking to the G20 summit by month’s end on some news for the trade war,” Mr. Perez said in an e-mail.
Sectoral indices were equally split between gainers and losers. Those in positive territory were led by property which advanced 0.89% or 38.86 points to 4,363.42. Mining and oil rose 0.76% or 55.95 points to 7,360.05, while services firmed up 0.24% or 4.20 points to 1,708.15.
Meanwhile, financials dropped 0.59% or 10.53 points to 1,746.33, followed by holding firms which tumbled 0.31% or 24.07 points to 7,669.23. Industrials slipped 0.07% or 8.55 points to 11,841.44.
Turnover stood at P9.05 billion after some 3.39 billion issues switched hands, slightly lower than the previous session’s P9.36 billion.
Foreign investors were in net buying mode at P18.57 million, snapping a three-day net selling streak capped by Friday’s P143.98-million outflow.
Decliners outpaced advancers, 98 to 88, while 50 names were unchanged.
Meanwhile, international markets ended lower last Friday due to heightened tensions between the US and Iran. The Dow Jones Industrial Average shed 0.13% or 34.04 points to 26,719.13. The S&P 500 index lost 0.13% or 3.72 points to 2,950.46, while the Nasdaq Composite index went down 0.24% or 19.63 points to 8,031.71.
