PSEi rebounds 2%, returns to 7,800
The stock market rebounded on Wednesday, gaining more than 2 percent to return to the 7,800 level on reports that the US and China could resume negotiations to end a trade war.
Following a 1.3-percent plunge on Tuesday, the benchmark Philippine Stock Excha nge index (PSEi) soared 2.17 percent or 166.22 points to end the day at 7,838.22, while the wider All Shares increased 1.64 percent or 75.40 points to finish at 4,679.52.
Diversified Securities, Inc. trader Aniceto Pangan said the Philippine market mimicked overnight gains on Wall Street, which was said to have taken heart from news that the Washington was open to discussions with Beijing.
Markets elsewhere in the region started the day on a positive note but then diverged on reports that the US was planning to more than double planned tariffs on Chinese goods.
Tariffs on $16 billion of Chinese imports are due in coming weeks, following measures on $34 billion worth of goods imposed in July that prompted a response in kind by Beijing.
Along with Manila, Tokyo, Singapore, Seoul, Taipei, Jakarta and Bangkok also rose but Shanghai tumbled by 1.8 percent and Hong Kong slipped by 0.9 percent.
Luis Limlingan, managing director at Regina Capital Development Corp. said investors had also “shrugged off the weaker-than-expected PMI (Purchasing Managers’ Index) data in favor of the currency appreciating against the US dollar, plus the net foreign buying over the last few days,” he added.
In a report on Wednesday, research firm IHS Markit said the Philippine manufacturing sector likely slowed in July based on a survey that put the PMI at 50.9 from 52.9 in June, the lowest in five months.
The peso, meanwhile, gained one and a half centavos on Monday to P53.08 against the dollar, while net foreign buying totaled P324.4 million at the stock market.
All sectoral indices were in the green, led by mining and oil that rose by nearly 5 percent.
Over 966 million issues valued at P7.18 billion were traded.
Winners led losers, 120 to 74, while 46 issues were unchanged.
WITH A REPORT FROM AFP
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