SHARES CONTINUED their ascent on Thursday, bringing the main index closer to the 8,000 level on hopes of warmer trade relations between the United States and China after their officials’ meeting this week.
The benchmark Philippine Stock Exchange index (PSEi) firmed up by 0.82% or 65.56 points to 7,985.23, reversing its losses in early morning trading. The broader all-shares index likewise climbed 0.78% or 36.94 points to 4,764.91.
“Philippine shares (were) once more ever closer to the 8,000 level alongside the S&P 500 in its longest winning streak since Sept. 14, on reports that the US and China have narrowed differences over trade,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
While US and Chinese officials gave little details on their trade talks that lasted for three days, they said both sides considered ways to achieve fairness, reciprocity, and balance.
Papa Securities Corp. Sales Associate Gabriel Jose F. Perez, meanwhile, attributed the market’s increase to the continued inflow of foreign funds.
Net foreign buying reached P1.5 billion on Thursday, higher than the previous session’s P1.37 billion. This marks the sixth day of net purchases for the market, with net sales recorded only logged on the first trading day of the year.
“Another strong round of net foreign buying propelled the index…even making an intraday high of 7,992.33 just a few points shy of the 8,000 mark,” Mr. Perez said in an e-mail.
The mining and oil counter was the lone sub-index that declined, slipping 0.28% or 25.07 points to 8,789.32.
The rest went up, led by services as it surged 1.68% or 25.60 points to 1,545.07. Financials jumped 1.14% or 20.56 points to 1,818.42. Industrials rose 0.98% or 112 points to 11,474.95; property went up 0.86% or 34.39 points to 3,990.24; while holding firms added 0.15% or 11.95 points to 7,930.61.
Some 2.12 billion issues valued at P10.11 billion switched hands, broadly steady from the previous session’s P10.17-billion turnover.
Advancers continued to outpace decliners, 109 to 82, while 51 names ended flat.
Papa Securities’ Mr. Perez noted that the PSEi could end the week on a positive note should foreign inflows continue to register above the P1-billion mark.
“Caveat, technical analysis indicator RSI (relative strength index) for the PSEi already at the overbought level so the potential of profit taking soon is still on the table,” Mr. Perez said.
Meanwhile, Wall Street’s major indices also posted gains overnight. The Dow Jones Industrial Average rose 0.39% or 91.67 points to 23,879.12. The S&P 500 index went up 0.41% or 10.55 points to 2,584.96, while the Nasdaq Composite index jumped 0.87% or 60.08 points to 6,957.08.
In contrast, Asian indices ended mixed after China’s inflation data missed expectations. — Arra B. Francia