LOCAL SHARES ended higher on Monday despite weak economic data from China, which showed a contraction in exports in August as an effect of its trade dispute with the United States.
The 30-member Philippine Stock Exchange index (PSEi) went up 26.65 points or 0.33% to close at 7,960.12. The broader all shares index also climbed 14.29 points or 0.29% to reach 4,799.31.
“Asian equities markets continued higher today with the PSE main index ending with some gains as well. This came despite weak data on Chinese exports, contracting for the month of August. Exports from China to the US dropped 16% due to increased tariffs. Investors are focused on more stimulus from governments to support the slowdown in global economic growth,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said on Monday.
China’s exports unexpectedly fell in August as shipments to the United States slowed sharply, pointing to further weakness in the world’s second-largest economy and underlining a pressing need for more stimulus as the Sino-US trade war escalates.
August exports fell 1% from a year earlier, the biggest fall since June, when it fell 1.3%, customs data showed on Sunday. Analysts had expected a 2.0% rise in a Reuters poll after July’s 3.3% gain.
Luis A. Limlingan, head of sales at Regina Capital Development Corp., shared the same sentiment and also noted the remarks of Federal Reserve Chairman Jerome Powell on the ongoing dispute between the world’s largest economies.
“Philippine shares were little changed today…. Fed Chairman Jerome Powell also said Friday the central bank will act as needed to sustain the current economic expansion, noting he does not expect the US economy to fall into a recession,” Mr. Limlingan said in a text message on Monday.
The S&P 500 and Dow industrials closed slightly higher on Friday as investors digested a mixed US jobs report and bet on a Fed rate cut this month, while China’s stimulus plan helped ease some concerns around global growth.
The Dow Jones Industrial Average rose 69.45 points or 0.26% to 26,797.6; the S&P 500 gained 2.72 points or 0.09% to 2,978.72; and the Nasdaq Composite dropped 13.75 points or 0.17% to 8,103.07.
Back home, most counters ended higher. Financials went up 19.46 points or 1.07% to 1,823.63; property gained 22.42 points or 0.55% to 4,073.39; services climbed 7.01 points or 0.44% to 1,602.00; and industrials added 13.11 points or 0.12% to 10,928.13.
Meanwhile, the mining and oil sub-sector tumbled 146.09 points or 1.57% to end at 9,123.36 and the holding firms counter also dropped 18.33 points or 0.23% to close at 7,889.81.
Some 1.003 billion issues valued at P7.67 billion switched hands on Monday, a tad higher than previous session’s P7.65 billion.
Losers beat advancers, 103 to 91, while 51 names were unchanged.
Foreigners continued to sell their holdings, with net outflows logged at P342.75 million on Monday, higher than the previous session’s P29.11 million. — VMPG with Reuters