Philippine Market Recap Aug 1, 2018
Market Recap
Philippine share prices rose, following gains on Wall Street, as a report of attempts to renew talks between the United States and China eased trade war fears, but investors will be keeping a close eye on data due today.
The benchmark PSEi surged 166.22 points or 2.17% to close at 7,838.22. The broader All Shares index climbed 75.40 points or 1.64% to 4,679.52 at the closing bell.
Global markets inched higher on Tuesday, helped by a report that the US and China were seeking to resume trade talks to defuse the battle over import tariffs.
Solid US data helped boost risk sentiment; however it was the news that US Treasury Secretary Mnuchin and Chinese Vice Premier Liu He are speaking again that sparked a bigger risk rally.
But a later report that the US plans higher tariffs on $200-bil in Chinese imports underscored the volatility of US-China trade relations.
Investors will be watching data from around the region, including manufacturing activity numbers from China, for indications of the outlook for the global economy.
Locally, focus would be on the upcoming Monetary Board policy meeting, July inflation and Q2 gross domestic product (GDP) figures and more corporate earnings results.
Policy meetings of the US Federal Reserve on Wednesday and the Bank of England on Thursday may also keep some investors on the sidelines, although the US central bank is expected to keep rates unchanged.
More than 966.441-mil shares, valued at P7.179-bil, changed hands. Market breadth was positive, with advancers outpacing decliners, 124 to 74, with 46 issues unchanged.
Gainers: RLC (+4.70%), DMC (+4.58%), SM (+4.21%), GTCAP (+4.12%), AEV (+4.10%)
Laggards: BPI (-2.24%), MBT (-0.95%), EMP (-0.14%)