PSEi firms up on easing US-China trade tensions
LOCAL SHARES firmed up on Friday, taking cues from Wall Street which was boosted by easing trade tensions between the the United States and China.
The bellwether Philippine Stock Exchange index (PSEi) climbed 0.6% or 47.89 points to close the week at 7,992.32, while the broader all shares index likewise gained 0.48% or 23.18 points to 4,822.97.
“Shares closed higher as investors digested a slew of US-China trade news along with a large bond-buying program from Europe’s central bank,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.
US President Donald J. Trump said Thursday he will be thinking about an interim deal with China, although he would still prefer a full agreement with the country. This follows Mr. Trump’s statement on Wednesday that he will delay the planned tariff increases on $250 billion worth of Chinese goods.
With this, the Dow Jones Industrial Average went up 0.17% or 45.41 points to 27,182.45. The S&P 500 index rose 0.29% or 8.64 points to 3,009.57, while the Nasdaq Composite surged 0.30% or 24.79 points to 8,194.47.
Investors also welcomed the European Central Bank’s (ECB) bond-buying program launched Thursday that seeks to stimulate the eurozone economy. It will start buying €20 billion worth of securities beginning Nov. 1.
At the same time, the ECB also cut the main deposit rate by 10 basis points, pushing the rates to -0.5%.
Philstocks Financial, Inc. likewise attributed the market’s increase to the ECB’s policy decision.
“The ECB’s monetary easing and optimism on US-China talks sent the local market higher by 47.89 points,” the brokerage said in a market note.
All sectoral indices ended in positive territory back home, led by services which jumped 1.1% or 17.78 points to 1,623.61.
Mining and oil rose 1.07% or 101.74 points to 9,591.46; property went up 0.87% or 35.37 points to 4,064.08; industrials climbed 0.82% or 90.22 points to 11,011.94; financials rallied 0.61% or 11.28 points to 1,832.62; while holding firms added 0.22% or 17.36 points to 7,918.59.
Turnover was thin at P4.53 billion after some 7.12 billion issues switched hands, lower than the previous session’s P6.73 billion.
Advancers overtook decliners, 111 to 69, while 63 names were unchanged.
Foreign investors turned net buyers at P140.55 million, against Thursday’s net outflow of P131.26 million. — Arra B. Francia