Trump, EU trade talks excite markets; PSEi rushes past 7,600 level

The stock barometer rallied to the 7,600 level yesterday as foreign funds started flowing back to large-cap stocks while global trade tension eased.

The main-share Philippine Stock Exchange index (PSEi) racked up 151.85 points or 2.02 percent to close at 7,665.85 on the back of improved foreign investor appetite while value turnover likewise picked up.

Local stock brokerage Papa Securities said markets reacted favorably to US President Donald Trump and the European Union’s agreement to work to bring down tariffs to zero.

Based on technical readings, Papa Securities said the index had broken its 50-day moving average of 7,450 on improved value turnover. “With this strength, we establish a new initial support at 7,450 given the PSEi’s upward trajectory,” Papa Securities said.

The index was also supported by P644.7 million in net foreign buying.

The upswing was led by holding firms, which added 2.69 percent, while the financial, industrial and property counters rose by over 1 percent. The services counter also firmed up.

Only the mining/oil counter ended lower.

Value turnover amounted to P6.66 billion. There were 125 advancers that edged out 79 decliners, while 42 stocks were unchanged.

Investors snapped up shares of AEV, which surged by 5.27 percent, while SM Investments, SM Prime and JG Summit all rose by over 3 percent.

BDO, Ayala Corp., Megaworld, URC, Jollibee, ICTSI, Meralco, PLDT and GT Capital all rose by over 1 percent.

Ayala Land, Metrobank and BPI also firmed up.

Metro Pacific fell by 2.34 percent, while AGI slipped by 0.5 percent.

Outside of the PSEi, notable decliners included Bloomberry and Global Ferronickel, which slipped by 2.71 percent and 1.42 percent, respectively.

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