Shares climb ahead of high-level US-China talks
SHARES bounced back on Wednesday, tracking positive sentiment across the region as investors were once again upbeat on prospects for the US-China trade war negotiations.
The bellwether Philippine Stock Exchange index (PSEi) jumped 1.34% or 105.49 points to close at 7,939.24 yesterday. The broader allshares index likewise rose 1.12% or 54.05 points to 4,856.94.
“PSEi ended the day 1.35% higher, following the trend across Asian bourses. The rally has been fuelled by increased optimism on the ongoing US China negotiations on trade,” AAA Southeast Equities, Inc. President William Matthew M. Cabangon said via text, adding that investors should be prepared for heightened volatility.
Officials of the United States and China are set to meet on Thursday and Friday for another round of high-level talks as both parties target to reach a deal before their truce ends on March 1.
Wall Street indices ended in positive territory, with the Dow Jones Industrial Average adding 0.03% or 8.07 points to 25,891.32. The S&P 500 index gained 0.15% to 2,779.76, while the Nasdaq Composite index picked up 0.19% to 7,486.77.
For Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan, Wednesday’s uptick served as a technical bounce after the PSEi’s drop to the 7,800 level on Tuesday.
“BoP (balance of payments) release also shows a significant contribution to FPI or foreign portfolio investments, which takes into account the foreign buying of shares in our local bourse,” Mr. Tan said in a separate message.
AAA Equities’ Mr. Cabangon also attributed the increase to the passage of the rice tariffication law, which is seen to help augment rice supply in the country.
“The rice tariffication bill also helped boost local stocks, as inflation expectations head lower due to an increase in the staple’s supply. It is worth noting that rice is one of the largest contributors to the national inflation figure,” Mr. Cabangon explained.
The Bangko Sentral ng Pilipinas estimates that the rice tariffication law will bring down the headline inflation rate by 0.6 percentage points this year
All sectoral indices closed in positive territory, except for the services counter which slipped 0.02% or 0.31 point to 1,565.68.
Industrials led gainers, soaring 2.01% or 228.29 points to 11,567.25, followed by mining and oil which surged 1.75% or 148.36 points to 8,591.99. Property also climbed 1.75% or 69.02 points to 4,009.11; holding firms rose 1.46% or 115.35 points to 7,999.22; and financials firmed up 0.24% or 4.39 points to 1,777.78.
Value turnover slipped to P7.80 billion after some 1.47 billion issues switched hands, versus the previous session’s P8.10 billion.
Market breadth was positive with 122 gainers versus 88 losers, while a total of 42 stocks ended flat.
Foreign investors were back on net buying mode, albeit at a narrow P88.43 million, compared to the previous session’s net sales worth P289.39 million.