SHARES MANAGED to end higher last week even as investors weighed the impact of China’s statements against online gaming in the country and fears of a recession in the United States.

The benchmark Philippine Stock Exchange index (PSEi) rose 0.51% or 40.58 points to close at 7,889.41 on Friday. On a weekly basis, the main index was up 1.20%, with net foreign outflows of P1.508 billion.

“Market was up on bargain hunting after the profit-taking in the past trading sessions on a number of selective blue chips despite negative breadth,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message Friday.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun noted that the PSEi moved along with Asian markets, defying the weakness in western indices.

“The main index got a break and ended higher [last] week after four weeks of consecutive losses… It ended the week up 1.20% after leaning on its support at 7,750 for most of the week,” Mr. Mangun said in a market report.

“A couple of blue-chips made it into our top gainers [last] week despite investors focusing on second-liners and speculative issues which has been the trend for most of the month.”

The property counter was the lone loser for the week as China’s foreign ministry said they want the Philippines to stop all forms of online gambling. This sent shares of property developers tumbling on Thursday as investors feared the impacts of China’s statement on their revenues.

Analysts have reported that Philippine offshore gaming operators have been one of the main drivers for office space demand in 2018, even outpacing the demand from business process outsourcing companies.

Meanwhile, international markets plunged on Friday after the US and China once again heightened their trade war with additional tariffs. Beijing slapped more duties on $75 billion worth of American goods and US retaliated with increased tariffs on a total of $550 billion worth of Chinese goods.

US President Donald J. Trump said he will raise the tariffs on $250 billion worth of Chinese goods to 30% from the current 25% on Oct. 1. The previously planned 10% tariff increase for $300 billion worth of products will also be hiked to 15% and will take effect on Sept. 1.

This is in addition to a series of tweets from Mr. Trump saying the US has lost trillions of dollars to China in previous years, dissolving hopes the two countries will resolve their trade war anytime soon.

With this, the Dow Jones Industrial Average plummeted 2.37% or 623.34 points to 25,628.90. The S&P 500 index slumped 2.59% or 75.84 points to 2,847.11, while the Nasdaq Composite index fell 3% or 239.62 points to 7,751.77.

Local financial markets will be closed on Monday, Aug. 26 for National Heroes Day. — Arra B. Francia

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