PSEi nears 8,000 on trade-deal hopes
Credit to Author: TYRONE JASPER C. PIAD| Date: Tue, 22 Oct 2019 16:26:57 +0000
RENEWED hopes for a possible end to the protracted trade war between the United States and China, and the anticipated release of third-quarter corporate earnings, buoyed the stock market on Tuesday.
The benchmark Philippine Stock Exchange index (PSEi) climbed 0.81 percent or 64.11 points to end at 7,995.24, while the wider All Shares gained 0.64 percent or 30.36 points to finish at 4,784.11.
“Shares traded higher today on stronger activity, boosted by optimism [over the] US-China trade talks [and the advent of the] corporate earnings season,” Regina Capital Development Corp. head of sales Luis Limlingan said.
The optimism was fueled by US President Donald Trump’s remarks that he and his Chinese counterpart Xi Jinping would be able to put pen to paper on a mini pact, saying that Beijing had started purchasing American farm goods as promised and that the first part of a wider deal was almost complete.
“We’ll be able to, we think, sign a completed document with China on phase one,” Trump said at the White House, adding that they would then move on to the next phases.
US Trade Representative Robert Lighthizer said efforts were being made for it to be ready when the two leaders meet at the Asia-Pacific Economic Cooperation summit in Chile next month. And Trump’s economic adviser Larry Kudlow indicated that tariffs planned to go into effect in December could be canceled if the talks go well.
Meanwhile, Universal Robina Corp. is set to release its July-to-September performance results on October 24, Cemex Holdings Philippines on October 25 and the Manila Electric Co. on October 28.
“If the index can sustain this momentum, we may see it break above 8,000 before the end of the week. However, profit-taking and an increase of selling pressure will take all gains back and test stronger support levels,” AAA Equities head of research Christopher Mangun said.
Wall Street reversed the losses it recorded the day before, with the Dow Jones S&P 500 and Nasdaq rising 0.21 percent, 0.69 percent and 0.91 percent, respectively.
Asian markets were also up, led by Seoul, which surged 1.16 percent. Tokyo rose 0.25 percent, Shanghai added 0.50 percent, Hong Kong inched up 0.10 percent, Jakarta gained 0.08 percent, Singapore climbed 0.77 percent, Thailand increased 0.52 percent and Vietnam rose 0.37 percent.
In Manila, all sectors were up, except for industrial, which dropped by 0.20 percent.
Volume turnover stood at 368.7 million valued at P6.04 billion.
Losers led winners, 94-85, while 61 issues were unchanged.
WITH A REPORT FROM AFP