Expected resumption of US-China talks lifts markets

The local stock barometer firmed up yesterday as the looming resumption of trade talks between the United States and China cheered regional markets.

The main-share Philippine Stock Exchange index (PSEi) gained 66.16 points, or 0.88 percent to close at 7,583.52 on selective buying of large-cap stocks, tracking mostly upbeat regional markets.

For the week, the PSEi gave up a total of 221.46 points or 2.8 percent.

Local stock brokerage Papa Securities noted that US markets had surged overnight on news that the United States and China were set to resume trade talks, with the latter sending a delegation to the United States this month.

As to the jitters over Turkish contagion, Papa Securities said the lira had now recovered to as much as 5.68 per dollar from as low as 7.08 per dollar. It added, however, that this recent strength had been due to other developments such as Qatar providing support to the country and the central bank pledging to cut the foreign currency reserve requirements on banks.

“A recovery from these levels, especially with how geopolitics are turning up, may see us trade between 7,500 to 7,800 the next few days” the brokerage said.

The index was led higher by the property and holding firms, which respectively climbed by 1.87 percent and 1.31 percent.

The industrial and services counters also gained.

On the other hand, the financial counter declined by 1.44 percent, while the mining/oil counter slipped by 0.15 percent.

Value turnover stood at P5.54 billion. Domestic investors mostly supported the market as foreigners were net sellers to the tune of P900.6 million.

Despite the PSEi’s gain, market breadth was negative. There were 98 decliners that outnumbered 91 advancers, while 58 stocks were unchanged.

Conglomerate Ayala Corp. led the PSEi higher with its 6.73-percent gain. Dealers said there was big gap during the recent fall in Ayala’s share price, which was revisited with this rebound.

Meralco gained 3.36 percent, while Ayala Land added 2.66 percent.

Investors also picked up shares of SM Prime Holdings, the day’s most actively traded company, which gained by 1.69 percent.

Jollibee, Metrobank and LTG all advanced by over 1 percent. GT Capital and AGI also contributed gains.

Notable gainers included Vulcan Mining, which surged by 23.23 percent on backdoor-listing speculation, while 8990 Holdings rose by 3.73 percent after announcing strong second quarter results.