US-China trade hopes propel PSEi past 7,900
Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Wed, 09 Jan 2019 16:24:46 +0000
THE stock market surged to the 7,900 level on Wednesday, hitting a near nine-month high, as investor optimism rose on news that trade talks between the United States and China were going well.
The benchmark Philippine Stock Exchange index (PSEi) jumped by 2.83 percent or 217.55 points to close at 7,919.67, its highest finish since April 12, 2018’s 8,043.07. The wider All Shares rose 2.02 percent or 93.80 points to end at 4,727.97.
Regina Capital Development Corp. head of sales Luis Limlingan said market rallied in line with global counterparts as sentiment over the US-China trade talks turned more bullish.
A scheduled two-day meeting — the first face-to-face talks since a 90-day truce was agreed last month — extended into a third day on Wednesday. A member of the US delegation said negotiations “went just fine” and US President Donald Trump on Tuesday tweeted that the discussions “going very well!”.
Philstocks Financial, Inc. research associate Piper Chaucer Tan echoed Limlingan’s view and said that bargain-hunting also helped buoy the PSEi following Tuesday’s 1.10-percent drop.
In a separate comment, P2P Trade Online sales associate Gabriel Jose Perez said the market was boosted by the heavy inflow of foreign funds.
Net foreign buying stood at P1.37 billion as foreigners bought P6.85 billion issues and sold P5.48 billion.
“With the strong breakout above the 7,900 resistance today, [the] next level to watch out for would be the high last April … [the] level could [be] reached soon especially if the inflow of foreign funds continues to remain strong in the coming days,” Perez added.
Upbeat sentiment boosted Wall Street overnight and Asian markets followed suit on Wedneday. Hong Kong rose by 2.3 percent, up for a fourth straight day, while Shanghai added 0.7 percent and Tokyo closed 1.1 percent higher.
In early European trade, London rose 0.9 percent, Paris gained 0.8 percent and Frankfurt added 0.7 percent.
In Manila, all sectoral indices ended in the green, with holding firms up the most by 4.48 percent.
Volume turnover stood at 3.37 billion issues valued at P10.17 billion.
Winners led losers, 140 to 72, while 30 issues were unchanged.
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