PSEi ends week in green on trade deal progress
Credit to Author: Tyrone Jasper C. Piad| Date: Fri, 13 Dec 2019 17:47:54 +0000
The stock market bounced back to the 7,800 territory on Friday as the reported progress on the first phase of a long-hoped-for trade deal between the United States and China fueled positive investor sentiment.
The benchmark Philippine Stock Exchange index (PSEi) climbed by 1.76 percent or 136.56 points to end at 7,877.63, while the wider All Shares added 1.38 percent or 63.32 to finish at 4,662.07.
“Philippine stocks jumped as the so-called phase one trade deal between the US and China has been agreed to in principle,” Regina Capital Development Corp. head of sales Luis Limlingan said.
Investors flocked back into stocks around the world on news that US President Donald Trump had signed off on a long-awaited pact between the world’s two largest economies that will see the cancellation of fresh US tariffs due to take effect this weekend.
While the pact is yet to be finalized, the news come as a massive relief to investors after weeks of toing and froing, with the two sides offering sometimes positive, sometimes downbeat comments on the talks’ progress.
Brokerage firm 2TradeAsia agreed, saying: “PSEi rallied above 7,800 after the US reached a phase one trade deal in principle.”
Wall Street also bounced back, with the Dow Jones, S&P 500 and Nasdaq gaining 0.79 percent, 0.86 percent and 0.73 percent, respectively.
So did Asian markets. Tokyo surged by 2.55 percent, Shanghai soared by 1.78 percent, Hong Kong jumped by 2.26 percent, Seoul added 1.54 percent, Jakarta inched up by 0.58 percent, Singapore climbed by 0.59 percent and Thailand increased by 0.78 percent. Vietnam was flat.
In Manila, all sectors were in the green, with property leading at 2.85 percent.
Volume turnover stood at 714.47 million amounting to P7.49 billion.
Winners outmatched losers, 123-61, while 51 issues were unchanged.
WITH A REPORT FROM AFP