LOCAL SHARES gained for the third straight day, joining Wall Street and major Asian markets in cheering easing US-China trade tensions, even as Friday’s finish was lower than a week ago.

The 30-member Philippine Stock Exchange index (PSEi) went up 35.28 points or 0.44% to close at 7,933.47 — though it was down 0.58% from the week-ago 7,979.66 on Aug. 30 — while the broader all-share index gained 10.74 points or 0.22% to end 4,785.02

“Positivity was due to optimism that the US and China will meet on October to discuss trade,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail when asked for comment.

“It was a good end to the week as the index gained 35.28 points to close at 7,933.47 on account of the Dow and S&P500 breaking out of their recent trading ranges last night.”

Reuters reported that major Wall Street indices on Thursday cheered news that Washington and Beijing had agreed to hold high-level talks amid their escalating trade war, while strong US economic data tempered concerns about a looming recession. The Dow Jones Industrial Average rose 1.41% to 26,727.4, the S&P 500 gained 1.3% to 2,975.95, while the Nasdaq Composite added 1.75% to 8,116.83.

Other major Asian markets followed suit, with Japan’s Nikkei 225 and Topix Index rising by 0.26% and 0.17%, respectively; Shanghai SE Composite increasing by 0.46%; Hong Kong’s Hang Seng Index climbing by 0.66%; South Korea’s KOSPI edging up 0.22% and India’s BSE Sensex Index gaining 0.92%.

PSE’s Friday finish also came a day after the government reported mixed economic data: a three-year-low inflation rate in August, a surge in committed foreign direct investments in the second quarter and first half, factory output that was down for the eight straight month in July, as well as increased number of the jobless but reduced underemployment in July.

Luis A. Limlingan, head of sales of Regina Capital Development Corp. said “stronger-than-expected US economic data” also helped the index climb. “Shares made another climb towards 8,000 as the stronger-than-expected US economic data and hopes of a cooled down US-China trade war soothed fears of an economic slowdown,” he said in a mobile phone message.

Back home, four of the six sectoral indices gained: property by 61.55 points or 1.54% to 4,050.97, services by 18.31 points or 1.16% to 1,594.99, industrial by 21.97 points or 0.2% to 10,915.02 and holding firms by 3.21 points or 0.04% to 7,908.14.

Ending Friday lower were mining & oil which gave up 107.92 points or 1.15% to 9,269.45 and financials which shed 11.54 points or 0.63% to 1,804.17.

Trade volume increased, with 2.099 billion shares worth P7.654 billion changing hands on Friday, compared to Thursday’s 869.684 million shares worth P7.108 billion.

Stocks that advanced narrowly edged out those that declined 96 to 91, while 46 others ended flat.

Investors abroad were predominantly bearish for the third straight day, ending Friday with P29.11 million net selling that was nevertheless 95.7% smaller than Thursday’s P672.43 million and was the smallest net outflow in those three days. — Vincent Mariel P. Galang

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