LOCAL SHARES increased on Tuesday as trading volumes improved and investors reacted on renewed hopefulness over the trade talks between United States and China.

The Philippine Stock Exchange index (PSEi) jumped 64.11 points or 0.81% to close at 7,955.24, while the broader all shares index advanced 30.36 points or 0.63% to end at 4,784.11.

“Global equities markets inched higher as investors remain optimistic on a fair deal between China and the US. Chinese Vice-Foreign Minister Le Yucheng said earlier today that any problem could be resolved if both sides respected each other… Here at the PSE, the main index ended higher on average trading volumes,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan noted in a mobile phone message that “[s]hares traded higher today on stronger activity, boosted by optimism around US-China trade talks as well as the corporate earnings season.”

US President Donald Trump said talks on a prospective Sino-US trade deal were “coming along very well,” Reuters reported.

The development lifted major Wall Street indices, with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite gaining 0.21%, 0.69% abd 0.91%, respectively.

Much of Asia followed suit: Japan’s Nikkei 225 and TOPIX by 0.25% and 0.41%, respectively, the Shanghai SE Composite by 0.5%, Hong Kong’s Hang Seng by 0.23%, South Korea’s KOSPI by 1.16% and Singapore’s Straits Times index climbed 0.77%.

“Regional stocks also closed higher on gains by rotation into value stocks, despite fresh uncertainty as UK leader Boris Johnson was denied a parliamentary vote on his Brexit deal,” Mr. Limlingan added.

Only one sectoral index at home dropped: industrial, by 21.18 points or 0.19% to 10,668.93.

The rest picked up: mining and oil by 145.18 points or 1.63% to 9,016.60, holding firms by 100.62 points or 1.31% to 7,772.23, property by 21.01 points or 0.5% to 4,165.60, financials by 16.7 points or 0.89% to 1,873.51 and services by 0.3 points or 0.02% to 1,537.23.

Value turnover improved to 368.70 million shares worth P6.04 billion compared to Monday’s 403.79 million shares worth P3.35 billion.

“Trading volumes picked up today because of several cross trades done by a handful of brokerages. Selling pressure has been very light since last week which has allowed bargain hunters to have a bigger effect on price movements,” Mr. Mangun said. “If the index can sustain this momentum, we may see (the PSEi) break above 8,000 before the end of the week. However, profit-taking and an increase of selling pressure will take all gains back and test stronger support levels.”

Stocks that lost beat those that gained 94 to 85, while 61 others ended flat. Foreign investors turned bullish with net buying at P156.50 million from Monday’s net selling of P2.97 million. — Denise A. Valdez

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