PSEi hits 7,500 on US-China trade war ‘ceasefire’

Philippine share prices jumped back to the 7,500 level on Monday amid investors’ optimism after the US agreed to delay the increase in tariff adjustments on Chinese imports.

The benchmark PSEi gained 165.05 points or 2.24 percent to close at 7,532.90. The broader All Shares increased by 82.92 points or 1.87 percent to 4,524.25.

“The stock market rally was fueled by optimism after Donald Trump and Xi Jin Ping agreed on a 90-day ‘ceasefire’ to postpone tariff escalations,” Christopher San Pedro, trader at Unicapital Securities Inc., said.

China and the United States agreed to halt additional tariffs in a deal that keeps their trade war from escalating as the two sides try again to bridge their differences with fresh talks aimed at reaching a deal within 90 days.

“It appears we took our cue from abroad as trade tensions between China and the US have abated and are likely going to be quiet for the next three months,” P2P Trade Online head of sales Arbee Lu said.

Foreign funds bought P6.558 billion shares and sold P6.682 billion for a net selling position of P123.074 million.

More than 1.493 billion shares valued at P10.216 billion, changed hands. Advancers led decliners, 115 to 73, and 48 issues were unchanged.

“Short term, I expect the market to test the 7,620 resistance and the gap at 7,468.62 and 7,300 as support levels,” San Pedro said. —VDS, GMA News