Stocks sustain climb on easing trade tension

The stock market performed stronger yesterday for the second straight day as investors managed to look for bargains dumped by foreign investors.

Thus, the benchmark Philippine Stock Exchange index (PSEi) gained 34.68 points, or 0.46 percent, to finish above the 7,500 mark at 7,522.92.

Likewise, the broader All Shares index gained 12.78 points or 0.28 percent to end at 4,507.33.

Majority of the sectoral indices finished in the green as well – the financials, services, holding firms and industrial gauges.

On the other hand, the mining and oil and property ended in negative territory.

Total value turnover reached P6.093 billion and market breadth was positive, 109 to 80 in favor of advancing stocks.

On the other hand, 46 issues were left unchanged.

“Local shares resumed their upward ascent as trade tensions showed signs of improvement. Shares in the Philippines and the region traded higher as investors digested news related to the ongoing trade war between the US and China,” said Luis Limlingan of Regina Capital.

As expected, the Bangko Sentral ng Pilipinas (BSP) kept interest rates unchanged during yesterday’s policy rate setting meeting.

The BSP said headline inflation has peaked and should continue to decelerate due to favorable base effects and that there are legislated measures that aim to resolve food supply shortage issues.

Global crude prices have also decelerated.