PSEi recovers, Peso end sideways amid trade war jitters

The PSEi recovered and rose 0.77 percent, or 59.84 points, to 7,819.39 points (Shutterstock photo)

MANILA — Bargain hunting boosted the Philippines’ main stocks gauge and the Peso remained afloat amid heightened trade war concerns between the world’s two economic giants, the US and China.

The Philippine Stock Exchange index (PSEi) recovered and rose 0.

77 percent, or 59.84 points, to 7,819.39 points.

Philstocks Financial, Inc. Research and Client Engagement head Justino Bernardo Calaycay, in a message to the Philippine News Agency (PNA), said investors are “still divided on which influencers — negative or positive — to give more weight to” as seen in the see-saw output of the main index this week.

“On one hand, you have a still positive outlook for the economy, yet on the other, there are risks that cannot be simply cast aside,” he said.

The government is scheduled to report on the Philippines’ second quarter 2018 gross domestic product (GDP) next week and Calaycay said the growth figure “could be the make or break point — even as we get into what is known as the Ghost Month.”

“If the numbers come out ok, we may see the index make an attempt at the 7900-7950 range. Otherwise, support is still at the 7750-7770 band,” he added.

With investors’ sentiment up, most of the other stocks indices are up, such as the broader All Shares, which increased by 0.

51 percent, or 23.61 points, to 4,668.29 points.

The sectors were led by Financials after it rose 1.40 percent. It was followed by Holding Firms, 1.34 percent; Mining and Oil, 1.19 percent; Services, 0.40 percent; and Industrial, 0.16 percent.

On the other hand, Property fell 0.55 percent.

Volume for the day totaled 1.72 billion shares amounting to PHP5.72 billion.

Gainers led losers at 126 to 67 while 51 shares were unchanged.

On the other hand, the local currency ended the week at 53.15, sideways from 53.09 finish Thursday.

A trader pointed this to worries about the possible trade war between the US and China after the Ministry of China reiterated its readiness to retaliate if the US pushes with its plan to implement additional import duties.

With risk aversion up, the local unit opened the day at 53.15 from 52.985 a day ago.

It ranged from 53.195 to 53.985 resulting in an average of 53.146.

Volume reached USD595.15 million lower than the previous session’s USD849.2 million.

The currency pair is seen to trade between 53.10 and 53.40 next week.