Optimism on US-China talks lifts PH market

The local stock barometer firmed up slightly on Tuesday as fresh optimism on US-China trade talks perked up most regional markets.

The main-share Philippine Stock Exchange index (PSEi) added 26.43 points or 0.34 percent to close at 7,893.94 on selective buying of large-cap stocks.

The interest rate-sensitive property counter drove the PSEi higher, rising by 1.61 percent ahead of an expected interest rate cut by the Bangko Sentral ng Pilipinas (BSP) this Thursday. The financial counter also gained.

Local stock brokerage Papa Securities said the PSEi would continue its sideways movement in the near term as investors await the BSP’s policy setting.

“We are still a buyer on dips, but technicals are signaling that it could be better to wait on lower levels near the index’s low at 7,620,” the brokerage said.

Value turnover for the day stood at P8.5 billion, or relatively better than the levels seen in recent days. There was net foreign buying worth P111.1 million.

Despite the PSEi’s gain, market breadth was negative. There were 122 decliners that edged out 80 advancers, while 54 stocks were unchanged.

The PSEi was led higher by SM Prime and Megaworld, which both rose by over 3 percent.

Ayala Corp., BPI and First Gen all gained over 1 percent.

Metrobank, Ayala Land and BDO also gained.

Outside of the PSEi, one notable gainer was Pilipinas Shell, which added 2.58 percent.

On the other hand, Aboitiz Power lost 2.38 percent, while GT Capital and AGI both fell by over 1 percent.

Jollibee and PLDT both ended slightly lower. —DORIS DUMLAO-ABADILLA