PSEi rebounds on positive US-China trade developments, ECB stimulus

Philippine shares closed in the green on Friday as positive developments overseas boosted investors’ sentiment.

The bellwether PSEi gained 47.89 points or 0.60% to 7,992.32 at the closing bell. The broader All Shares increased by 23.18 points or 0.48% to 4,822.97.

“Shares closed higher as investors digested a slew of US-China trade news along with a large bond-buying program from Europe’s central bank,” Regina Capital Development Corp. head of sales Luis Limlingan said.

Stocks rose worldwide as China and the United States made concessions ahead of next month’s planned talks in Washington, aimed at easing a trade war that has whipsawed markets and stoked recessionary fears for months

US President Donald Trump agreed to delay increased tariffs on billions worth of Chinese goods for two weeks after China exempted tariffs on a basket of US imports and promised to buy more US agricultural products.

Also supporting investor sentiment is the European Central Bank’s decision to cut its deposit rate from -0.4% to -0.5%, while announcing it would restart open-ended purchasing of long-term government bonds at a pace of €20 billion a month in an effort to further reduce long-term interest rates, according to Limlingan.

Foreign funds bought P2.379 billion of shares and sold P2.238 billion for a net buying position of P140.550 million.

More than 7.117 billion shares valued at P4.530 billion, changed hands. Advancers led decliners, 111 to 69, and 63 issues were unchanged. —VDS, GMA News