Local markets recover in midweek session

MANILA – Risk-on sentiment returned to the Philippines’ financial and capital markets Wednesday, allowing both local stocks and the peso to walk away with gains.

The Philippine Stock Exchange index (PSEi) surged to the 7,900-level after rising by 2.83 percent, or 217.55 points, to 7,919.67 points.

A trader attributed this to encouraging developments in efforts to mediate a trade deal between the US and China.

Improvement in US stocks overnight also boosted local stocks, the trader said.

PSEi’s increase was tracked by all the other counters with the broader All Shares ending the day at 4,727.97 points, up by 2.02 percent or 93.80 points.

The sectoral gauges were led by the Holding Firms after it inched up by 4.48 percent and was followed by Services, 2.53 percent; Property, 2.20 percent; Financials, 1.38 percent; Industrial, 0.48 percent; and Mining and Oil, 0.40 percent.

Volume reached 3.37 billion shares amounting to PHP10.17 billion.

Gainers led losers 140 to 72 while 30 stocks were unchanged.

Relatively, the peso ended the day at 52.345, PHP0.125 better than its 52.47 finish on Tuesday.

It opened the day at 52.41, little changed from the 52.39 start in the previous session, trading between 52.43 and its closing level, bringing the day’s average to 52.376.

Volume reached USD775.64 million, lower than the USD798.9 million.

The currency pair is seen to trade between 52.30 and 52.50 on Thursday. (PNA)