PSEi, peso end week up on US-China trade talks

PSEi gained 0.39 percent, or 30.83 points, to 7,962.3 points, which Regina Capital Managing Director Luis Limlingan traced to the update on the US-China trade talks. (Photo: qvist/ShutterStock)

MANILA — Reports that US and Chinese officials are now starting with the framework to be used for a possible trade deal between their economies boosted both the Philippine Stock Exchange index (PSEi) and the peso on Friday.

PSEi gained 0.39 percent, or 30.83 points, to 7,962.3 points, which Regina Capital Managing Director Luis Limlingan traced to the update on the US-China trade talks.

Limlingan said reports of more indications, particularly from Europe and Japan, pointing to a possible global economic slowdown was outpaced by the news on the US-China trade discussions.

“The fears about a worldwide slowdown were somewhat muted by reports that US and Chinese negotiators were beginning to outline a deal to end a long-running trade spat,” he said.

Citing reports, Limlingan said China has put forward a proposal to increase by USD30 billion annually its purchases from the US, to include agricultural commodities, such as soybeans, corn and wheat.

This latest turnout was noted by investors thus, the general risk-on sentiment in the Philippines’ equities market during the day.

All Shares mirrored the main gauge after it rose 0.55 percent, or 26.83 points, to 4,883.83 points.

Property rose 1.12 percent and was followed by Holding Firms, 0.60 percent; Industrial, 0.47 percent; and Services, 0.26 percent.

However, Financials and Mining and Oil fell 0.99 percent and 0.19 percent, respectively.

Volume reached 1.51 billion amounting to PHP8 billion.

Losers led gainers at 97 to 89, while 54 shares were unchanged.

Relatively, the peso ended the week at 52.065 from 52.13 in the previous session.

A trader attributed the peso’s strength during the day also to the news on the US-China trade discussions.

It opened the day at 52.24 from 51.98 a day ago, and traded between 52.25 and 52.04, bringing the day’s average to 52.149.

Volume reached USD961.87 million, lower than the USD1.23 billion a day ago.

The currency pair is seen to trade between 52 and 52.30 next week.