Stock index rises above 7,800

The benchmark Philippine Stock Exchange Index (PSEi) was off to a good start in August as it ended above the 7,800 level.

The PSEi, battered in recent months, was up 2.17 percent, or 166.22 points, to 7,838.22 on Wednesday. The broader All-Shares index was also up 1.64 percent to 4,679.52.

Luis Gerado Limlingan, managing director at stockbrokerage Regina Capital Development, partly attributed the gain to easing worries over an ongoing trade dispute between the United States and China.

Reports overseas showed that US and Chinese officials were in private discussions to restart trade negotiations to avert a drawn-out trade war, which would hurt global economic growth.

This helped translate to gains in the Philippine equities market and extended across all sectors on Wednesday.

The biggest increase came from mining and oil, which surged almost 5 percent. Foreign Affairs Secretary Alan Peter Cayetano said on Tuesday that a draft framework for joint exploration with China in the West Philippine Sea could be out by next month.

Holding firms also rose 3.14 percent, as conglomerates Ayala Corp. and SM Investments moved higher.

A total of 966.4 million shares valued at P7.18 billion changed hands yesterday, data from the PSE showed. There were 120 gainers against 74 decliners while 46 companies closed unchanged.

Ayala Land Inc. was the most actively traded on Wednesday as it ended higher by 2.69 percent to P41.95 a share. It was followed by SM Prime Holdings, up 0.66 percent to P38, Ayala Corp., up 1.6 percent to P1,015; SM Investments Corp., up 4.21 percent to P990, and BDO Unibank Inc., up 3.64 percent to P136.80 a share.