By Arra B. Francia, Senior Reporter

THE main index bounced back to end the month at the 7,900 level, riding on the positive sentiment in Wall Street after China said it will not immediately retaliate against the United States’ tariff increase this Sunday.

The 30-member Philippine Stock Exchange index (PSEi) climbed 1.10% or 86.85 points to close at 7,979.66 on Friday. The broader all shares index likewise rose 0.92% or 43.71 points to 4,809.48.

“PSEi ended higher amid trade developments on US-China and month-end window dressing,” Philstocks Financial, Inc. said in a market note.

The stock barometer however ended 0.82% lower on a monthly basis due to volatility brought about by the trade war and fears of a US recession.

China’s commerce ministry reportedly said they would not immediately respond to the latest round of tariffs announced by US President Donald J. Trump concerning $300 billion worth of Chinese goods starting Sept. 1.

The same spokesperson said both sides are now discussing when their trade negotiators could meet next month.

“Equity markets gained confidence following the positive development in the U.S.-China trade negotiations, but concerns over the global economy kept prices near the multi-year peak,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.

With this, the Dow Jones Industrial Average jumped 1.25% or 326.15 points to 26,362.25. The S&P 500 index rallied 1.27% or 36.64 points to 2,924.58, while the Nasdaq Composite index firmed up 1.48% or 116.51 points to 7,973.40.

Asian counters however ended mixed, with Japan’s Nikkei 225 up 1.19% or 243.44 points to 20,704.37. The Hang Seng index eked out gains of 0.01% or 1.36 points to 25,704.86, while the Shanghai Composite slippeed 0.16% or 4.68 points to 2,886.24.

Locally, mining and oil was the lone counter that ended in the red, slumping 0.19% or 16.01 points to 8,250.52. The rest moved to positive territory, led by services which rose 3.07% or 48.32 points to 1,623.75, as shares in telco rivals Globe Telecom, Inc. and PLDT, Inc. gained 5.51% and 4.8%, respectively.

Financials went up 1.29% or 23.39 points to 1,833.28; holding firms gained 1.02% or 80.01 points to 7,922.86; industrial firmed up 0.54% or 59.43 points to 11,126.30, while property added 0.18% or 7.14 points to 3,998.

Turnover rose to P9.74 billion after some 1.31 billion issues switched hands, higher than the previous session’s P8.44 billion.

Advancers trumped decliners, 126 to 72, while 35 names were unchanged.

Foreign investors snapped their seven-day net buying streak as net inflows reached P409.13 million, against P419.63 million in net outflows on Thursday.