Stimulus, easing tensions lift Psei
THE stock market recovered somewhat on Friday after falling the day before as positive developments on foreign leads buoyed market sentiment.
The bellwether Philippine Stock Exchange index (PSEi) rose 0.60 percent or 47.89 points to finish at 7,992.32, while the wider All Shares climbed by 0.48 percent or 23.18 points to close at 4,822.97.
“Shares closed higher as investors digested [a number] of US-China trade news, along with [the introduction of a new] bond-buying program [by] Europe’s central bank,” Regina Capital
Development Corp. head of sales Luis Limlingan said.
As anticipated, the European Central Bank (ECB) on Thursday unveiled a fresh round of economic stimulus, with another interest rate cut seen to ease monetary policy to support growth. It said it did so to boost liquidity, provide support for struggling banks and reduce borrowing costs deeper into negative territory in a bid to kickstart lending.
Investors received more good news when Bloomberg News reported that US officials were considering an interim trade deal with China that could freeze or cancel some tariffs if Beijing agrees to commitments on intellectual property and agricultural purchases.
Citing five unnamed sources, the report comes as tensions between the two world’s biggest economies show signs of easing ahead of high-level talks in Washington next month.
For its part, brokerage firm Philstocks Financial, Inc. said “ECB’s monetary easing and optimism on US-China talks sent the local market higher.”
The Dow Jones, S&P 500 and Nasdaq were up by 0.17 percent, 0.29 percent and 0.30 percent, respectively.
In Asia, all markets rose on Friday, with Tokyo leading at 1.05 percent. Hong Kong added 0.85 percent; Seoul, 0.84 percent; Shanghai, 0.75 percent; Singapore, 0.52 percent; Thailand, 0.19 percent; and Jakarta, 0.05 percent.
In Manila, all sectors were up, with services at the forefront at 1.11 percent.
Volume turnover reached 7.12 billion amounting to P4.53 billion.
Winners trumped losers, 111-69, while 63 issues were unchanged.
WITH REPORTS FROM AFP