PSEi returns to 7,000; world markets rebound

THE stock market climbed back to the 7,000 level on Friday, with analysts pointing to bargain-hunting following Thursday’s rout and news that US President Donald Trump could meet with his Chinese counterpart, Xi Jingping, during next month’s G20 summit.

The Philippine Stock Exchange index (PSEi) rose by 1.75 percent or 120.39 points to close at 7,004.77. The wider All Shares grew 1.43 percent or 60.55 points to finish at 4,301.80.

Regina Capital Development Corp. head of sales Luis Limlingan said reports that Trump wanted to meet Xi boosted expectations of an easing in the US-China trade war.

Regional peers were also up on the news. Hong Kong grew 2.12 percent, Shanghai rose 0.91 percent, and Tokyo was up by 0.46 percent.

First Grade Finance Inc. President Astro del Castillo said market players also took the opportunity to hunt for cheap valuations after the PSEi dropped to the 6,800 level on Thursday.

“They set aside the red flags … and focused on the attractive valuations,” he said.

“However, value turnover remains thin, which somehow indicates that the market could move sideways in the next few days until something pushes it up,” del Castillo added.

All sectoral indices closed in the green with mining and oil gaining the most by 2.63 percent.
More than 636 million shares valued at P5.3 billion were traded.

Advancers beat decliners, 127 to 56, while 47 issues were unchanged.

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