MANILA -- Encouraging developments concerning US-Mexico trade issues resulted in the rise of the Philippine Stock Exchange index (PSEi) to the 8,000-level and sideways close of the peso against the greenback Monday.
The main equities gauge ended the week’s first trading day at 8,045.39 points, up by 0.77 percent or 61.41 points.
BPI Research attributed this to US President Donald Trump's announcement of an indefinite suspension of tariff on all Mexican imports after both parties were able to pen a deal addressing immigration issues before the June 10 deadline.
Earlier, Trump threatened to impose tariffs on Mexican imports if the latter will not be able to address the border issues.
This news lifted sentiments and allowed most of the counters in the local equities market to post gains.
All Shares tracked the PSEi and rose 0.44 percent, or 21.52 points, to 4,912.31 points.
Property led the sectors with a jump of 1.17 percent and was trailed by the Industrial, 1.00 percent; Holding Firms, 0.67 percent; Services, 0.28 percent; and Mining and Oil, 0.19 percent.
Only the Financials ended on the red after a decline of 0.02 percent.
Volume reached 1.6 billion shares amounting to PHP7.35 billion.
Decliners led advancers at 91 to 84 while 63 shares were unchanged.
Meanwhile, the peso finished the day’s trade at 52.1 from 52.04 Friday last week.
BPI Research traced this to the report of the Bangko Sentral ng Pilipinas (BSP) on the March 2019 net foreign direct investments (FDIs) amounting to USD586 million, 13.9 percent lower than the USD681 million net inflows same period last year.
Another factor is the report that the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producers are considering reining in output beyond June this year, as demand for oil continue to decline.
With these, the peso opened the trade at 52.05, weaker than its 51.68 start in the previous session.
It traded between 52.18 and 51.99, resulting to an average of 52.075.
Volume reached USD1.02 billion, up from the USD983.99 million at the end of last week.
The currency pair is seen to trade between 52.00 and 52.20 Tuesday. (PNA)
