By Denise A. Valdez, Reporter
THE BENCHMARK INDEX rebounded yesterday ahead of the fresh round of trade negotiations between the United States and China scheduled later this week.
The Philippine Stock Exchange index (PSEi) gained 73.50 points or 0.95% on Tuesday to close at 7,756.72, as the broader all shares index climbed 22.22 points or 0.47% to 4,688.39.
“The trade talk between US and China on Thursday as well as the low prices of stocks due to the sell off last week may have probably influenced investors to hunt bargain stocks,” Timson Securities, Inc. Trader Jervin S. de Celis said in a text message on Tuesday.
The two economic giants are scheduled to resume trade talks this week, which Bloomberg reported will likely veer away from discussions on reforming Chinese industrial policy and government subsidies.
“Investors are…anticipating that if the two countries strike a good deal, then that should bolster market sentiment ahead of the corporate earnings release in November and that will somehow alleviate worries on the condition of the global economy in the middle of the trade war between US and China,” Mr. De Celis said.
For Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco, the market was also affected by positive data from the central bank on Monday. The Bangko Sentral ng Pilipinas reported that the country’s gross international reserves (GIR) climbed to a record-high $86.163 billion at end-September.
“The market’s gains today can be attributed to our record high gross international reserves as of end of September 2019. With a high GIR level, our currency can be protected from external shocks. A stable currency in return would help boost our local market,” Mr. Tantiangco said on Tuesday.
Buying activity in shares of SM Investments Corp. (SM), Ayala Corp. (AC), Jollibee Foods Corp. (JFC) and BDO Unibank, Inc. (BDO) also drove up the main index, as the consolidated growth of the four firms reached 56 points at the end of yesterday’s trading.
Most sectoral indices moved up on Tuesday, with mining and oil leading the pack with a 174.45-point increase or 1.94% to end at 9,157.67.
Holding firms followed as it added 134.79 points or 1.79% to 7,639.04, while industrials rose 133.95 points or 1.28% to 10,594.84.
Property shares also picked up by 9.36 points or 0.23% to 4,043.91 and financials added 2.41 points or 0.13% to 1,792.41.
The lone declining sectoral index was services, which fell 2.93 points or 0.19% to close the session at 1,513.45.
Trading volume increased to 1.02 billion yesterday, with a total value of P6.95 billion, higher than Monday’s P5.84 billion worth of shares.
Advancers outpaced decliners, 116 to 66, while 51 names closed unchanged.