Philippine Market Recap Aug 28, 2018
Market Recap
Philippine share prices rallied after a holiday break, tracking another Wall Street record as investors cheered a fresh trade deal between the United States and Mexico that brings an end to one row picked by Donald Trump that had rattled global markets.
The bellwether PSEi gained 78.14 points or 1.006% to 7,844.61 at the closing bell. The broader All Shares added 30.31 points or 0.64% to 4,759.13.
The agreement raises hopes the two-decade-old North American Free Trade Agreement, torn up by the White House soon after Trump’s election, can be salvaged after Canada rejoins talks on Tuesday.
Monday’s agreement comes after officials from Washington and Beijing held talks last week aimed at easing trade tensions that have seen them hit each other with tariffs on tens of billions of dollars worth of goods.
While the meeting did not achieve any breakthrough, the fact they took place was seen as a good sign.
Investors expect Canada too would agree to the new terms to preserve a three-nation pact, ultimately dispelling the economic uncertainty caused by US President Donald Trump's repeated threats to ditch the 1994 NAFTA accord.
However, some treated this rally with a degree of caution.
News of the US-Mexico trade deal has fueled risk appetite.
It is hard to extrapolate much out of it, as the United States continues to treat each country and deal on its own merit. Traders remain wary of the current rally in risk appetite, and see it as short-lived.
Amid the absence of any market-moving news locally, investors will keep an eye on US economic data with consumer confidence figures due later in the day and the latest estimate for Q2 gross domestic product expected on Wednesday.
The NAFTA agreement is clearly a positive to the extent that it reduces the risk of a generalized global trade war, but was not automatically positive for the outcome of talks with China.
Despite this, APAC equities including HK/China should benefit from the weaker US dollar and risk-on moves.
More than 1.552-bil shares valued at P7.650-bil, changed hands. Market breadth was positive, with advancers beating decliners, 112 to 94, and 38 issues were unchanged.
Gainers: JGS (+5.65%), MER (+3.83%), GLO (+3.50%), ICT (+2.86%), SM (+2.32%)
Laggards: AEV (-4.76%), SMC (-3.32%), PCOR (-1.00%), GTCAP (-0.92%), TEL (-0.76%)Market Recap
Philippine share prices rallied after a holiday break, tracking another Wall Street record as investors cheered a fresh trade deal between the United States and Mexico that brings an end to one row picked by Donald Trump that had rattled global markets.
The bellwether PSEi gained 78.14 points or 1.006% to 7,844.61 at the closing bell. The broader All Shares added 30.31 points or 0.64% to 4,759.13.
The agreement raises hopes the two-decade-old North American Free Trade Agreement, torn up by the White House soon after Trump’s election, can be salvaged after Canada rejoins talks on Tuesday.
Monday’s agreement comes after officials from Washington and Beijing held talks last week aimed at easing trade tensions that have seen them hit each other with tariffs on tens of billions of dollars worth of goods.
While the meeting did not achieve any breakthrough, the fact they took place was seen as a good sign.
Investors expect Canada too would agree to the new terms to preserve a three-nation pact, ultimately dispelling the economic uncertainty caused by US President Donald Trump's repeated threats to ditch the 1994 NAFTA accord.
However, some treated this rally with a degree of caution.
News of the US-Mexico trade deal has fueled risk appetite.
It is hard to extrapolate much out of it, as the United States continues to treat each country and deal on its own merit. Traders remain wary of the current rally in risk appetite, and see it as short-lived.
Amid the absence of any market-moving news locally, investors will keep an eye on US economic data with consumer confidence figures due later in the day and the latest estimate for Q2 gross domestic product expected on Wednesday.
The NAFTA agreement is clearly a positive to the extent that it reduces the risk of a generalized global trade war, but was not automatically positive for the outcome of talks with China.
Despite this, APAC equities including HK/China should benefit from the weaker US dollar and risk-on moves.
More than 1.552-bil shares valued at P7.650-bil, changed hands. Market breadth was positive, with advancers beating decliners, 112 to 94, and 38 issues were unchanged.
Gainers: JGS (+5.65%), MER (+3.83%), GLO (+3.50%), ICT (+2.86%), SM (+2.32%)
Laggards: AEV (-4.76%), SMC (-3.32%), PCOR (-1.00%), GTCAP (-0.92%), TEL (-0.76%)
