PSEi up after Wall Street rally over trade deal
Credit to Author: Tyrone Jasper C. Piad| Date: Tue, 17 Dec 2019 15:20:28 +0000
THE stock market ended in the green on Tuesday on the back of positive sentiment from Wall Street, which was cheered by news that the United States and China reached an interim trade agreement over the weekend.
The benchmark Philippine Stock Exchange index (PSEi) climbed by 0.38 percent or 28.85 points to close at 7,730.45, while wider All Shares inched up 0.03 percent or 1.17 points to finish at 4,583.06.
“Investors bought back into the market after the spillover of positive sentiment from the US market, which touched fresh highs [during Monday’s] trade from an upbeat mood tied to the preliminary US-China trade deal last week,” Regina Capital Development Corp. head of sales Luis Limlingan said.
Christmas cheer continued to flow through trading floors after Friday’s agreement between the world’s top two economies ended months of wrangling and removed any immediate uncertainty.
The deal, which will see Washington wind back some tariffs and China ramp up purchases of US goods, as well as change its trade practices, sparked a surge in equities that continued on Monday in New York, with all three main indexes ending at all-time highs.
“We saw a minor bounce today after [Monday’s] dismal performance. Support remains at 7,700, however. We may see it end below this level for the week,” AAA Equities head of research Christopher Mangun said.
On Wall Street, the Dow Jones, S&P 500 and Nasdaq all jumped by 0.36 percent, 0.71 percent and 0.91 percent, respectively.
Asian markets were mixed. Tokyo added 0.47 percent, Shanghai surged by 1.27 percent, Hong Kong gained 1.09 percent, Seoul increased by 1.27 percent and Jakarta inched up by 0.23 percent. In contrast, Singapore dropped by 0.28 percent, Thailand declined by 0.01 percent and Vietnam slid by 0.77 percent.
In Manila, sectors were mixed. Industrial, holding firms and services were up, while the rest fell.
Volume turnover stood at 2.71 billion, amounting to P10.37 billion.
Decliner led advancers, 138-51, while 52 issues were unchanged.
WITH A REPORT FROM AFP