Philippine stocks end higher on US-China talks
By Denise A. Valdez, Senior Reporter
THE PHILIPPINE Stock Exchange index (PSEi) recovered on Tuesday, but still fell short of hitting the 6,000 mark on lackluster trading.
The main index picked up 9.86 points or 0.16% to close at 5,953.44; while the broader all shares index increased 8.03 points or 0.22% to end at 3,548.60.
“Local shares traded between negative and positive before settling in the green as news came out that the US said both sides see progress on a Phase 1 with China,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.
News wires reported Tuesday, Philippine time, that representatives from the US and Chinese governments held trade negotiations over the phone, specifically, to discuss the Phase 1 trade deal that the two economies signed earlier this year.
“Both sides see progress and are committed to taking the steps necessary to ensure the success of the agreement,” the US Trade Representative’s office said in a statement, quoted by Reuters in a report.
The development helped improve investor sentiment after the postponement of the Aug. 15 talks between the two countries. Most Asia-Pacific stocks were trading in green territory when the local market closed.
“The market was able to end higher today, despite starting on red territory, as positive sentiment in the US markets last night — due to reports that President Trump expanded the utilization of a coronavirus treatment using plasma — spilled over to the local bourse,” Timson Securities, Inc. Trader Darren T. Pangan said in a mobile message on Tuesday.
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices rose 1.35%, 1% and 0.60%, respectively, on Monday. This, after reports that the US government is considering fast-tracking an experimental vaccine before November and using plasma to treat coronavirus patients, the Financial Times said.
“We’ll have to observe if the index manages to stay above the 5,900 support level throughout the week, with nearest resistance lying at the 6,200 area,” Mr. Pangan added.
Three sectoral indices at the local bourse ended Tuesday’s session with gains. Services grew 19.69 points or 1.35% to 1,473.29; industrials improved 33.06 points or 0.42% to 7,890.84; and mining and oil added 17.94 points or 0.31% to 5,791.83.
On the other hand, financials lost 5.59 points or 0.49% to 1,116.19; property shed 6.34 points or 0.22% to 2,805.34; and holding firms slid 0.65 point or 0.01% to 6,169.07.
Some 1.25 billion issues valued at P4.56 billion switched hands on Tuesday, down from the previous day’s 2.28 billion issues valued at P10.27 billion.
Decliners stood at 109, advancers at 84, and unchanged names at 51 at the end of trading.
Net foreign selling declined to P463.07 million on Tuesday from P1.04 billion in the last session.
