Trade talk resumption boosts PSEi
THE stock market bounced back to the 8,000 level on Monday as investors welcomed news that trade negotiations between the United States and China will resume.
The bellwether Philippine Stock Exchange index (PSEi) grew by 0.55 percent or 44 points to close at 8,043.71, while the wider All Shares rose by 0.45 percent or 21.87 points to end at 4,915.65.
“Investors breathed a momentary sigh of relief with trade talks resuming and the Huawei sanction partially lifted,” Regina Capital Development Corp. head of sales Luis Limlingan said.
On the sidelines of the Group of 20 (G20) meeting in Osaka, Japan over the weekend, US President Donald Trump announced that Washington and Beijing were again resuming trade talks after backtracking from negotiations over intellectual property issues.
Brokerage company Philstocks Financial Inc. echoed Limlingan’s view, saying investors might also be waiting for inflation data for June.
Earlier this week, the Bangko Sentral ng Pilipinas put the rate of the increase in the prices of goods and services last month to between 2.2 percent and 3 percent on the back of lower rice and petroleum prices, as well as a reduction in electricity rates.
The Philippine Statistics Authority (PSA) will announce official June inflation figures on Friday, July 5.
The local market traded in line with most of its regional counterparts. Tokyo jumped by 2.13 percent, Shanghai climbed 2.22 percent, Jakarta grew 0.34 percent, Singapore rose 1.46 percent, and Bangkok was up .59 percent.
Only Hong Kong and Seoul finished lower, down 0.28 percent and 0.04 percent, respectively.
In Manila, most sectoral results were in the green, except for services, which dipped 0.68 percent.
Over 1.2 billion issues were traded, valued at P5.3 billion.
Losers led winners, 99 to 98, while 57 issues remained unchanged.
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