PSEi nears 8,000 level anew
Credit to Author: Tyrone Jasper C. Piad| Date: Tue, 29 Oct 2019 17:59:31 +0000
The stock market is inching nearer the 8,000 level as strong nine-month earnings, news on the United States and China inking a trade deal, and a possible Federal Reserve cut buoyed investor sentiment.
The benchmark Philippine Stock Exchange index (PSEi) rose by 0.56 percent or 44.66 points to end at 7,991.19 while the wider All Shares increased by 0.27 percent or 12.92 points to finish at 4,787.17 on Tuesday.
“Philippine stocks climbed as rising optimism for a trade deal with China combined with solid earnings here as well as abroad and bets the Federal Reserve will cut rates,” Regina Capital Development Corp. head of sales Luis Limlingan said.
US President Donald Trump said on Monday that “phase one” — which covers the farming and banking industries — of his country’s trade agreement with China is expected to be signed earlier than scheduled, but no specific date was given.
Originally, the deal was set to be signed next month in Chile during a summit.
The Fed, in relation to this, is anticipated to cut rates by 25 basis points this week on easing trade tensions between China and US.
On the local front, the banks were posting robust nine-month profits, boosting market sentiment.
BDO Unibank Inc. saw its net income surge by 49.3 percent to P32.1 billion while Union Bank of the Philippines registered a 40-percent growth in profits to hit P8.5 billion.
“The general investor sentiment abroad has improved as western markets are at new highs, and investors are anticipating a trade deal soon,” AAA Equities head of research Christopher Mangun said.
The Dow Jones, S&P 500 and Nasdaq soared 0.49 percent, 0.56 percent and 1.01 percent, respectively.
In Asia, Tokyo climbed by 0.47 percent, Singapore inched up by 0.28 percent and Thailand added 0.13 percent.
Shanghai plunged by 0.87 percent, Hong Kong dropped by 0.36 percent, Seoul fell 0.04 percent, Jakarta slipped 0.27 percent, and Vietnam slid by 0.03 percent.
In Manila, all sectors ended in the green, except for services that dropped by 0.01 percent.
Over 790.44 million shares were traded for P6.63 billion.
Winners led losers, 97-81, while 56 issues were unchanged.