Lower inflation lifts stock market to 8,200 level
Credit to Author: Tyrone Jasper C. Piad| Date: Tue, 05 Nov 2019 16:29:36 +0000
THE stock market booked another trip to the 8,000 territory on the back of October inflation data and positive developments on the US-China trade war.
The benchmark Philippine Stock Exchange index (PSEi) grew by 1.95 percent or 157.03 points to finish at 8,216.68, while the wider All Shares surged by 1.15 percent or 55.67 points to close at 4,887.37 on Tuesday.
“Philippine shares climbed astronomically amid continued optimism a near-term US-China trade resolution and Philippine inflation hitting below 1 percent once again for October,” Regina Capital Development Corp. head of sales Luis Limlingan said.
The rate of the increase in the prices of good and services decelerated to 0.8 percent last month from 0.9 percent in September and 6.7 percent in October last year.
Meanwhile, negotiations between the US and China continue, with Chinese President Xi Jinping recently calling for cooperation in concluding the trade spat with Washington during the China International Import Expo.
“The investor sentiment is improving as more and more investors are looking at strong earnings from companies and improving economic fundamentals,” AAA Equities head of research Christopher Mangun said.
He pegged the support level at the 8,150 mark.
Wall street was up again, with the Nasdaq taking the lead at 0.56 percent. The Dow Jones and S&P 500 added 0.42 percent and 0.37 percent, respectively.
In Asia, Tokyo rose 1.76 percent, Shanghai inched up by 0.54 percent, Hong Kong increased by 0.28 percent, Seoul improved by 0.58 percent, Jakarta climbed by 0.75 percent, Singapore jumped by 0.56 percent, Thailand added 0.16 percent and Vietnam gained 0.23 percent.
In Manila, all sectors were in the green, except for mining and oil, which slipped by 1.78 percent.
Over 651.15 million shares were traded for P9.55 billion.
Losers led winners, 95-94, while 54 issues were unchanged.