Stocks resume climb on US-China talks

The local stock barometer resumed its upswing on Wednesday, surging past the critical 7,900 mark as optimism over US-China trade talks perked up global markets.

The main-share Philippine Stock Exchange index (PSEi) racked up 217.55 points, or 2.83 percent, to close at 7,919.67 as foreign investors picked up local blue chips.

Value turnover was heavy at P10.17 billion, while foreigners posted a net buying position of P1.37 billion. Now that domestic inflation jitters have subsided, investors are revisiting their Philippine portfolio after last year’s sell-off.

Globally, investors cheered news that the ongoing US-China trade talks have gone well.

At the local market, all counters went up, led by holding firms, which climbed by 4.48 percent. The services and property counters both went up by more than 2 percent while the financial counter added 1.38 percent.

There were 140 advancers that edged out 72 decliners, while 30 stocks were unchanged.

Investors bought shares of index heavyweight SM Investments, which surged by 6.08 percent, while energy-based conglomerate Aboitiz Equity Ventures also gained 6.64 percent. Gokongwei-led JG Summit also went up by nearly 6 percent.

Global port operator ICTSI added 5.16 percent, while Security Bank, GT Capital and PLDT all gained more than 4 percent.

Conglomerates Ayala Corp. and AGI both rose by more than 3 percent while property developers Megaworld and RLC were both up by more than 2 percent.

BDO, SM Prime and BPI all gained over 1 percent, while URC, Puregold and Metrobank also firmed up.

One notable gainer outside the PSEi was Phinma Energy (PHEN), which rallied by 8.46 percent on news that Ayala Corp. had acquired a stake in the company. The deal was based on a valuation of P6.65 billion for 100 percent of PHEN. As of Wednesday’s finish, PHEN had a market capitalization of around P6.36 billion.

Jollibee bucked the day’s uptrend, losing 0.62 percent.

In 2018, the PSEi initially hit all-time highs but ended the year with the worst annual performance seen in a decade. The main index last year gave up a total of 1,092.4 points, or 12.8 percent, from the closing level of 8,558.42 in 2017. This marked a turnaround from the 25.1-percent market gain in the previous year.

This new year, however, the PSEi has gained 453.65 points, or 6 percent, so far.