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PHILIPPINE STOCKS may continue to climb this week on hopes of easing trade tensions between the United States and China.

On Friday, the bellwether Philippine Stock Exchange index (PSEi) rose by 1.79% or 110.27 points to close at 6,268.75, while the broader all shares index went up by 1.02% or 37.44 points to end at 3,695.69.

Week on week, the PSEi surged by 2.19% or 134.13 points from the 6,134.62 finish on April 16, marking its second consecutive week of gains.

“Strong corporate earnings sustained the PSEi’s plight above 6,000 despite geopolitical tensions and global growth downgrades throughout the week,” online brokerage 2TradeAsia.com said in a market note.

“The local market rose last week, mainly attributable to its Friday jump. In the process, the market was able to get past its 50-day exponential moving average. Value turnover is not convincing yet, however, as many are still staying on the sidelines amid lingering uncertainties especially on the global trade front,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

For this week, the PSEi may continue to build on the upward momentum seen on Friday, Mr. Tantiangco said. “Investors are still expected to monitor the developments on the global trade frictions initiated by the US’ tariff policies. Positive developments mainly on trade negotiations are expected to boost market sentiment. Lack of such, however, may cause investors to exit the bourse.”

Mr. Tantiangco put the PSEi’s support at 6,000 and resistance at 6,400.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the benchmark’s immediate minor support is pegged at 6,110-6,180, while minor resistance is at 6,360.77-6,490.

For its part, 2TradeAsia.com placed the PSEi’s support at 6,000 and resistance at 6,400.

US President Donald J. Trump asserted in an interview published on Friday that tariff negotiations were under way with China, but Beijing denied any talks were taking place, the latest in a series of conflicting signals over what progress was being made to de-escalate a trade war threatening to sap global growth, Reuters reported.

Mr. Trump told Time magazine that talks were taking place and that Chinese President Xi Jinping had called him, an assertion he repeated to reporters as he was leaving the White House on Friday morning for Rome to attend the funeral of Pope Francis.

“China and the US are NOT having any consultation or negotiation on #tariffs,” China shot back in a foreign ministry statement posted by the Chinese Embassy in the US. “The US should stop creating confusion.”

The back-and-forth adds to the substantial uncertainty surrounding Mr. Trump’s erratic tariff policy, not just around China, but also as it pertains to the dozens of countries scrambling to strike their own deals to ease the burden of the hefty import taxes he has unleashed since returning to the White House in January. — R.M.D. Ochave with Reuters

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