By Denise A. Valdez, Reporter
THE PHILIPPINE Stock Exchange index (PSEi) rebounded on Wednesday as investors begin an anticipated Christmas rally, driven by optimism on positive developments in the Sino-US trade talks.
The local bourse’s main index surged 129.09 points or 1.68% to close at 7,836.89 on Wednesday. The broader all shares index likewise jumped 58.64 points or 1.26% to 4,685.
“Post MSCI rebalancing, shares we heavily bought up by the market as investors brace for window dressing and the beginning on the Christmas rally,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message yesterday.
The PSEi recorded two straight days of decline in this week’s trading before it went back to green territory on Wednesday. Aside from the anticipation of a Christmas upturn, Mr. Limlingan said local shares climbed due to optimism on the US-China trade negotiations. Foreign news outlets reported late Tuesday that the trade deal is close to its conclusion, citing US President Donald Trump as saying Washington is in its “final throes” with regard the “phase one” trade agreement.
Wall Street was upbeat on the developments, closing Tuesday’s trading with a 0.20%, 0.22% and 0.18% growth on the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite, respectively.
This performance of Wall Street led to the increase of the PSEi, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message, adding that investors took cues from US stocks’ “record-high performance overnight.”
“At the same time, with the MSCI rebalancing having taken full effect already, investors took the chance to hunt for bargains in the local market,” he added.
Almost all sectoral indices at the local bourse rose on Wednesday. Financials increased 47.78 points or 2.59% to 1,891.17; property gained 102.56 points or 2.59% to 4,049.16; industrials jumped 183.27 points or 1.88% to 9,884; holding firms added 62.74 points or 0.81% to 7,750.97; and mining and oil gained 14.85 points or 0.17% to 8,452.11.
The sole sectoral index that declined was services, which fell 7.11 points or 0.45% to end at 1,540.93.
Value turnover on Wednesday dropped to P7.68 billion from P21.16 billion on Tuesday, with 1.82 billion issues changing hands.
Stocks that increased outnumbered those that declined, 102 against 77, while 54 ended unchanged.
Offshore investors remained bearish, although net foreign selling was trimmed to P1.05 billion from P4.80 billion on Tuesday.
“Resistance should the recovery continue for the last two days of the week would be at the critical 8,000 level once again. This could be reachable if foreign selling finally abates,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail.