Local stocks recover on positive foreign news

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PHILIPPINE shares recovered on Friday due to favorable developments in the international scene.

The 30-member Philippine Stock Exchange index (PSEi) gained 69.40 points or 0.91% to close at 7,722.58, while the broader all-share index climbed 20.19 points or 0.32% to end 4,648.35.

“Philippine shares rallied today, along with regional benchmarks indexes closing at new records, following the signing of a trade truce between the U.S. and China on Wednesday and Senate approval of a new trade deal between the US, Mexico, and Canada,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message on Friday.

China agreed to buy $200 billion worth of US products and services over the next two years, which is part of the two countries “phase one” deal. In exchange, the US agreed to reduce the tariff on $120 billion Chinese products to 7.5% from 15%.

Meanwhile, the trade agreement of US, Mexico, and Canada was passed by the US Senate with a vote of 89 to 10, which gives US President Donald Trump an advantage, prior to his impeachment trial. This is just awaiting the signature of Mr. Trump.

This reflected both in the US and other Asian markets. On Wall Street, Dow Jones Industrial gained 267.42 points or 0.92% to 29,297.64, the S&P 500 index gained 27.52 points or 0.84% to 3,316.81, while the Nasdaq Composite increased 98.44 points or 1.06% to 9,357.13.

For Asian markets, Japan’s Nikkei 225 gained 108.13 points or 0.45% to 24,041.26; Kospi Index increased 2.52 points or 0.11% to 2,250.57; HongKong’s Hang Seng index gained 173.38 points or 0.60% to 29,056.42; and Shanghai Composite climbed 1.42 points or 0.05% to 3,075.50.

Back home, subsectors all gained, led by industrial, which gained 140.80 points or 1.51% to close 9,477.42; mining and oil gained 95.12 points or 1.18% to end at 8,143.53; property gained 38.65 points or 0.97% to 4,035.78; financials climbed 25.60 points or 1.41% to 1,846.91; holding firms gained 15.58 points or 0.21% to 7,475.59; and services gained 9.08 points or 0.58% to 1,564.02.

Some 1.216 billion issues valued at P6.271 billion switched hands on Friday, versus the previous session’s 1.04 billion issued worth P6.44 billion.

Net selling on Friday’s session was at P196.07 million, down from previous session’s outflows at P478.39 million.

Stocks that gained outnumbered those that fell, 99 to 77, while 53 issues were unchanged.