PSEi rebounds on news of fresh US-China talks
THE stock market snapped a six-day losing streak on Thursday, joining a regional rally spurred by news that the US had offered fresh trade talks to China.
The bellwether Philippine Stock Exchange index (PSEi) grew 0.92 percent or 68.17 points to close at 7,517.37 while the broader All Shares rose 0.55 percent or 25.15 points to finish at 4,602.31.
Philstocks Financial, Inc. research analyst Piper Chaucer Tan said investors went bargain-hunting after the market was sold down for six consecutive days following last week’s announcement that August inflation had exceeded expectations to hit a new nine-year high
“Market players also reacted positively on US and China’s expected trade talks in November,” he added.
Regina Capital Development Corp. head of sales Luis Limlingan also pointed to bargain-hunting as having lifted the index.
“Investors were also awaiting the next chapter of the US-China trade [dispute],” he said.
US Treasury Secretary Steve Mnuchin was reported to have invited top Chinese officials to discuss an escalating trade war. Beijing confirmed the invitation and said it “holds a welcoming attitude to it.”
Regional markets have had a rough ride recently as US President Donald Trump threatened to impose tariffs on all goods from China. Beijing responded by warning that it would retaliate.
Most Asian markets rose in response to news of the US invitation.
Hong Kong’s Hang Seng Index jumped 2.5 percent, having fallen for six straight days and into a bear market, which is a 20 percent drop from its January record high.
Shanghai climbed 1.2 percent, Seoul gained 0.1 percent and Tokyo ended one percent higher.
Wellington and Taipei were also higher, while Jakarta ran up 0.9 percent and Bangkok 1.6 percent.
Sydney, however, fell 0.8 percent and Singapore eased 0.2 percent.
In Manila, all sectoral results closed in the green led by mining and oil, which rose by 1.97 percent.
Volume turnover, however, was thin with only 738.5 million issues valued at P6.07 billion traded.
Losers led winners, 123 to 72, while 45 issues were unchanged.
WITH A REPORT FROM AFP
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