PHILIPPINE STOCKS rebounded on Thursday amid easing trade concerns and as investors picked up cheap stocks following a four-day market slump.
The Philippine Stock Exchange index (PSEi) rose 1.08% or 68.5 points to end at 6,398.60, while the broader index of all shares rose 0.62% or 22.31 points to 3,619.
“The PSEi ended higher as concerns about global uncertainty and trade wars eased, boosting market sentiment,” said Luis A. Limlingan, head of sales at Regina Capital Development Corp., in a Viber message. “Investors turned to more hunting, which provided support for the index. This happened after four consecutive days of market decline.”
“The PSEi returned this Thursday following four consecutive days of decline … Investors are hunting for bargains supported by good spillovers from Wall Street. This comes amid the hope that the conflict between the US and selected European countries will decrease following the announcement by US President Donald Trump that the draft of the future agreement for Greenland has been made,” said Philstocks Manager Tabernant Financial, Louisngcongco.
Wall Street ended higher on Wednesday, with the S&P 500 posting its biggest one-day gain in two months, as investors were encouraged by news that a draft Greenland accord had been reached and the possibility of new US tariffs on European partners, Reuters reported.
“We have drafted a future agreement regarding Greenland and, in fact, the entire Arctic region,” US President Donald J. Trump wrote in his Public Truth forum. “Based on this understanding, I will not be entitled to the fee that was supposed to go into effect on February 1.”
The Dow Jones Industrial Average rose 588.64 points or 1.21% to 49,077.23; the S&P 500 gained 78.76 points or 1.16% to 6,875.62; and the Nasdaq Composite gained 270.50 points or 1.18% to 23,224.83.
Mr. Tantiangco said the strengthening of the peso against the dollar also helped improve sentiment. The peso ended at a more than two-week high of P59.16 against the greenback on Thursday, up 10.1 centavos from P59.261 on Wednesday.
Most of the industry indices closed higher on Thursday. Participating firms jumped by 1.27 percent or 64.08 points to 5,099.93; funds rose 1.01% or 21.56 points to 2,137.91; services increased by 0.96% or 24.52 points to 2,576.81; industrials rose 0.88% or 79.78 points to 9,078.99; and the commodity increased by 0.57% or 13.24 points to 2,314.26.
Meanwhile, mining and oil fell by 1.81% or 328.38 points to 17,727.40.
Advancers outnumbered dissenters, 116 to 82, while 61 names were closed unchanged.
The price dropped to P6.6 billion for 799.89 traded shares from P6.87 billion and 1.21 billion shares changed hands on Wednesday.
Total imports increased to P284.11 million from P252.82 million. – AGC Magno with Reuters
