By Denise A. Valdez, Reporter
THE PHILIPPINE Stock Exchange index (PSEi) inched closer to breaching the 8,000 mark yesterday as investors reacted to earnings reports and positive developments in the US-China trade war.
The main index grew 44.66 points or 0.56% to close at 7,991.19 on Tuesday, as the broader all shares index added 12.92 points or 0.27% to 4,787.17.
Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message that the PSEi’s gains can be attributed to the “optimism on third quarter earnings and hopes on the US-China negotiations.”
Several foreign news outlets reported on Monday that US President Donald Trump is looking to sign “a very big portion” of the trade deal with China ahead of schedule. Reuters likewise reported that US is looking to extend its tariff suspensions on P34-billion Chinese goods from its Dec. 28 expiration.
Wall Street was positive at the close of Monday’s trading, with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite gaining 0.49%, 0.56% and 1.01%, respectively.
In Asia, indices ended mix: Japan’s Nikkei 225 and Topix indices were up 0.47% and 0.86%, respectively, together with Singapore’s Straits Times by 0.13%.
Meanwhile, back home, services was the only sectoral index that declined, losing 0.20 point or 0.01% to close the session at 1,526.69.
The rest ended in the green, led by mining and oil, which rose 143.91 points or 1.57% to 9,285.91. Property climbed 39.96 points or 0.96% to 4,188.79; holding firms went up 48.50 points or 0.62% to 7,823.89; industrials gained 40.43 points or 0.38% to 10,487.73; and financials added 5.41 points or 0.28% to 1,912.31.
Mr. Tantiango said another contributor in the PSEi’s rise on Tuesday was the increasing value turnover, which climbed to P6.63 billion from Monday’s P5.88 billion.
“This week so far, our average daily value turnover is at P6.25 billion which is higher compared to last week’s average of P5.25 billion. This shows improving participation from investors,” he said.
He added that the bullishness of offshore investors helped pick up the main index as net foreign buying closed at P432.68 million, higher than Monday’s net purchases worth P142.55 million.
More shares improved than declined yesterday, 97 against 81, while 56 ended flat.
AAA Southeast Equities, Inc. Research Head Christopher John Mangun said the main index may go above the 8,000 level on Wednesday on improved activity.
“We may see (the PSEi) blow through that (8,000) level tomorrow; however, we are not out of the woods yet. Selling pressure always intensified as it traded above 8,000. We are expecting to see this trend continue,” he said in an e-mail on Tuesday.