By Revin Mikhael D. Ochave, Reporter
PHILIPPINE stocks on Tuesday hit their highest close in more than four months as investors cheered the 90-day tariff truce between the US and China.
The bellwether Philippine Stock Exchange Index (PSEi) went up 1.68% or 108.62 points to 6,566.82, while the broader all-share index gained 1.12% or 42.48 points to 3,805.33.
The stock advance came a day after general peaceful midterm elections.
“The PSEi surged above the key resistance around 6,500 on strong volume as investors bought into positive news of a 90-day detente in the US-China trade war, as well as the generally peaceful outcome of the Philippine midterm elections,” Juan Paolo E. Colet, managing director at China Bank Capital Corp., said in a Viber message.
“This is a good start to the shortened trading week but sustaining this will now depend on the market’s reaction to upcoming data flows, including first-quarter corporate earnings and the US April inflation print,” he added.
The US is cutting extra tariffs it slapped on China this year to 30% from 145%, while China is reducing duties on US goods to 10% from 125%.
Meanwhile, the Commission on Elections seeks to proclaim the 12 winning senators by May 17 as it started canvassing votes.
“The local market rose further upon the resumption of trading as investors took cues from Wall Street’s rally overnight,” Japhet Louis O. Tantiangco, a senior research analyst at Philstocks Financial, Inc., said in a Viber message.
“This came as the US and China agreed to temporarily cut tariffs while continuing trade negotiations, raising hopes of a trade deal between the two economic superpowers which would benefit the global economy,” he added.
Almost all the market’s sectoral indexes advanced. Services gained 2.47% or 51.43 points to 2,129.31, while holding companies rose 1.95% or 106.14 points to 5,534.23.
Industrials climbed 1.37% or 125.14 points to 9,238.14, while financials increased 1.35% or 33.65 points to 2,521.48. Property inched up 0.31% or 7.07 points to 2,264.13.
On the other hand, mining and oil declined 1.33% or 125.46 points to 9,255.33.
Value turnover expanded to P8.89 billion covering 1.16 billion shares, from P7.95 billion covering 738.19 million stocks exchanged on Friday.
Winners beat losers 96 to 83, while 58 shares were unchanged. Net foreign buying sank to P54.62 million from P463.78 million on Friday.