PSEi up as investors shrug off G7 dispute

Local share prices firmed up on Monday as investors downplayed heightened trade tensions following an acrimonious meeting of the world’s biggest economies.

The benchmark Philippine Stock Exchange index (PSEi) added 30.56 points or 0.40 percent to close at 7,771.30 while the wider All Shares rose 0.31 percent or 14.44 points to end at 4,704.54.

“Philippine shares closed generally higher … as investors brushed aside tensions between the US and major allies” following the conclusion of a G7 meeting in Canada, Regina Capital Development Corp. Managing Director Luis Limlingan said.

US President Donald Trump capped the G7 meeting by refusing to endorse a joint communiqué, further adding fuel to a trade dispute with major allies such as G7 summit host Canada.

“Investors are [also]viewing the meeting between Trump and North Korean leader Kim Jong-un to be a positive catalyst,” Limlingan added.

Trump and Kim will meet today in Singapore with a broad range of issues said to be on the table.

Gio Perez, equity trader at Papa Securities Corp., said market sentiment had been tempered by upcoming holidays, with local markets closed today and on June 15, Friday, in celebration of Independence Day and Eid al-Fitr, respectively.

“The peso depreciating to a new 2018 high of as much as P52.95 ahead of the Federal Reserve’s meeting on June 13 may have also contributed to the muted movement—more so that expectations are for a hike abroad,” he added.

Most sectors ended in the green except financials, which fell by 0.11 percent, and property, down 0.92 percent.
Volume turnover was thin with only 849 million issues valued at P4 billion traded,
Winners led losers, 103 to 84, while 49 issues were unchanged.

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