Stocks shrug off US-China trade war

Share prices gained yesterday despite rising concerns over the full-blown trade war between the US and China.

The benchmark Philippine Stock Exchange index (PSEi) gained 46.67 points, or 0.64 percent, to settle at 7,233.29 from Monday’s 7,186.62.

The broader All Shares index recovered 28.14 points, or 0.64 percent, to end at 4,413.44 from 4,385.30 last Monday.

Market breadth was positive as gainers outweigh decliners, 113 to 73, with 54 unchanged.

All counters including the holding firms, financials, property, industrial, mining and oil as well as services indices ended in positive territory.

The trade dispute between the US and China continued to heat up with the start of new tariffs on $34 billion worth of Chinese products last Friday, along with China’s retaliatory tariffs on US products.

Economic managers said the impact of the US-China trade war on the Philippines is minimal and negligible.

BDO Unibank chief market strategist Jonathan Ravelas said the immediate support and resistance of PSEi is seen at 7,000 and 7,500 levels, respectively.

Ravelas said the market is set to continue its assault of the 7,500 level.

Metropolitan Bank & Trust Co. said in its latest “Views from the Metro” concerns over inflation spiraling out of control continues to hound investors.