Stock market surges 2%; returns to 7,600 level
Easing trade tensions, increased net foreign buying and higher volumes allowed the stock market to return to the 7,600 level on Thursday.
The bellwether Philippine Stock Exchange index (PSEi) surged by 151.85 points or 2.02 percent to close at 7,665.84. The broader All Shares, meanwhile, rose 69.99 points or 1.54 percent to end at 4,605.52.
“Tariff tensions dropped after the United States and the European Union reached some deal which averted an outright trade war, with the US winning some concessions from the European continent. This was what led to the PSEi climbing,” Regina Capital Development Corp. Managing Director Luis Limlingan said.
“Add to that the increased volumes and net foreign buying, the index is establishing a new trading range,” Limlingan added.
Jervin de Celis, trader at Timson Securities, Inc. said investors were also optimistic given second quarter corporate results that had started to trickle in.
On Wednesday, US President Donald Trump and European Commission President Claude Juncker announced that they agreed to work on settling a dispute that had rattled markets and sparked fears of an all-out global trade war.
The news initially boosted Asian markets but most ended the day lower, a development blamed on lackluster US corporate earnings results.
Tokyo closed down 0.1 percent, Shanghai fell by 0.7 percent, Sydney was flat while Hong Kong dropped 0.5 percent.
Seoul bucked the trend, gaining 0.7 percent.
Back in Manila, only the mining and oil sector closed in the red, dropping by 0.64 points. Holding firms led the gainers with a 2.69-percent rise.
Over 697 million issues valued at P6.66 billion were traded.
Foreign funds bought P3.9 billion issues and sold P3.26 billion for a net foreign buying position of P644 million.
Winners led losers, 125 to 79, while 42 issues were unchanged.
with a report from AFP
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