US-China trade talk hopes help lift PSEi
SHARE prices regained ground on Friday with investor sentiment buoyed by news that the US and China would return to the negotiating table amid an escalating trade war.
The benchmark Philippine Stock Exchange index (PSEi) added 66.16 points or 0.88 percent to close at 7,583.52 while the broader All Shares rose 21.29 points or 0.46 percent to finish at 4,606.69.
“Philippine shares climbed as US shares rallied higher … on news that the US and China might resume trade talks by next week, which also elevated investors’ sentiment in emerging markets,” Regina Capital Development Corp. head of sales Luis Limlingan said.
Wall Street’s three main indices settled in the green on Thursday. The Dow Jones jumped 1.58 percent, the S&P 500 gained 0.79 percent, and the Nasdaq grew 0.42 percent.
Timson Securities, Inc. trader Jervin de Celis also pointed to the US-China trade talks and said investors would be looking for any positive developments.
“If ever we see an improvement about the current situation of the two countries, market sentiment will stay positive since discussing or fixing the escalating trade rift will promote growth among the two super economies as well as other big trading partners of the US and China,” De Celis said.
On the domestic front, Limlingan said Friday’s gain was also due in part to news that foreign portfolio investments had rebounded in July.
The BSP reported on Thursday that “hot money” flows had turned positive last month to a net inflow of $53.29 million, a reversal from June’s net outflow of $516.12 million, in the wake of good second-quarter corporate earnings results.
“[This] indicated the onset of a buying spree from foreign funds given the index’s relative cheapness,” Limlingan noted.
Sectoral results were mixed, meanwhile, with financials and mining and oil losing 1.44 percent and 0.15 percent, respectively.
Volume turnover reached 1.16 billion issues valued at P5.54 billion.
Losers led winners, 98 to 91, while 58 issues remained unchanged.
The post US-China trade talk hopes help lift PSEi appeared first on The Manila Times Online.