Shares extend climb as marts cheer US-China deal
By Arra B. Francia, Senior Reporter
STOCKS firmed up on Tuesday, rising with the rest of the world as the United States and China agreed on a truce to their ongoing trade war.
The 30-member Philippine Stock Exchange index (PSEi) climbed 0.62% or 49.89 points to close at 8,093.60 yesterday. The broader all-shares index likewise rose 0.53% or 26.06 points to 4,941.71.
“The index continued to move in the green, tracking gains from the US markets last night,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail on Tuesday.
Markets over the world were mostly positive after US President Donald J. Trump and Chinese President Xi Jinping agreed to resume trade negotiations during the G20 summit last weekend.
Mr. Trump agreed to no longer impose additional tariffs on $250 billion worth of Chinese goods other than the 25% increase he previously announced, while China will also maintain its tariffs on $110 billion worth of American goods.
With this, the Dow Jones Industrial Average edged higher by 0.44% or 117.47 points to 26,717.43. The S&P 500 index rallied 0.77% or 22.57 points to 2,964.33, while the Nasdaq Composite index was up 1.06% or 84.92 points to 8,091.16.
“Markets enjoyed their best day in nearly two weeks with technology stocks leading the way while food & beverage was the only sector trading in the red,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message, also attributing the market’s increase to the resumption of trade talks between two of the country’s largest economies.
Most Asian markets followed suit, as Japan’s Nikkei 225 added 0.11% or 24.30 points to 21,754.27. The Hang Seng index jumped 1.08% or 307.52 points to 28,850.14. The Shanghai Composite however slipped 0.03% or 0.96 points to 3,043.94.
“SM’s breakout past the P980 resistance level contributed to the most to the index’s move today as the heavyweight closed at P996. It also had the highest net foreign buying of P103 million,” Mr. Perez added, referring to SM Investments Corp.
Property was the lone counter that ended with losses back home, albeit at a minimal 0.07% or 3.06 points to 4,342.47.
The rest went up, led by holding firms which jumped 1.04% or 81.04 points to 7,817.77. Services racked up 0.87% or 14.80 points to 1,714.53; industrials gained 0.83% or 97.50 points to 11,842.07; mining and oil firmed up 0.43% or 33.36 points to 7,690.13; while financials added 0.41% or 7.06 points to 1,727.81.
Some 981.97 million issues valued at P5.93 billion switched hands, higher than Tuesday’s P5.31 billion.
Advancers outpaced decliners, 118 to 77, while 51 stocks were unchanged.
Net foreign outflows stood at P145.25 million, lower than the previous session’s P234.13 million.
