July 22, 2018, 11:47 pm
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Weak foreign selling lifts share prices

Share prices ended higher Wednesday as weak foreign selling eased the drag on the market’s recovery.

Philippine stocks were boosted by gains in industrials.

“Investors think that despite the risks and headwinds, some of their risks may have burst in already which resulted in some bargain-hunting on some heavily discounted levels”, said Fio Dejesus, an analyst at Manila-based RCBC Securities.

The Philippine Stock Exchange index (PSEi) was up 100.44 points to 7,333.73, a 1.39 percent hike. 

The broader all shares index was up 34.57 points to 4,448.01, a 0.78 percent hike. 

Gainers edged losers 101 to 91 with 41 stocks unchanged. 

Trading turnover reached P5.16 billion. 

Gio Perez, trader at Papa Securities Corp., said “weak net foreign selling” helped the market go up. 

The amount of foreign funds selling out “weakened to only P84.6 million from more than P500 million the past two days,”  Perez said.

 “The PSEi stood out in the Asia-Pacific region as most of the other bourses ended in the red. The negative sentiment felt throughout might have been due to the Trump administration recently releasing a list of tariffs on $200 billion of Chinese goods – making good on its recent threats,” Perez added.

He said  investors will now look at the US market’s performance overnight.

“Let’s also hope that foreign selling remains weak tomorrow to get us past the initial aforementioned level,” Perez said.

Most actively traded Ayala Land Inc. was up P0.75 to P37.30. Bank of the Philippine Islands was up P3.10 to P94.10. Metropolitan Bank and Trust Co. was up P0.30 to P69.10. SM Investments Corp. was up P36.50 to P916.50. Jollibee Foods Corp. was up P1.20 to P247.20. PLDT Inc. was up P37 to P1,360. 

Other Asian stock markets fell  with Singapore erasing some of the last two sessions’ gains and Vietnam extending losses to a third session, as Washington warned of tariffs on an additional $200 billion worth of Chinese imports, escalating the trade dispute.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.5 percent as the new tariff plan rekindled risk-aversion after a strong start to the week for global equities. 

“Expect a risk-off tone to prevail over Asian markets today as investors prepare for the next escalation of US-Sino trade tensions and China’s response”, OCBC said on a note.

Singapore shares shed as much as 1.7 percent, giving up some of their 2.6 percent gain over the last two sessions.

Oversea-Chinese Banking Corp Ltd and DBS Group Holdings fell over 2.6 percent each.

Indonesian stocks slid 1 percent, with Bank Negara Indonesia down as much as 3.4 percent and Unilever Indonesia dropping over 1 percent.

The index of the country’s 45 most liquid stocks declined 1.6 percent in early trade.

Malaysian shares were down as much as 0.5 percent. Telecommunications service provider Axiata Group Bhd fell 3.8 percent.

The Malaysian central bank is expected to leave its benchmark interest rate unchanged at its first policy meeting under the newly appointed central bank governor. 

Thai shares fell nearly 1 percent, with energy stocks taking a beating from falling oil prices. 

PTT Public Co fell more than 2 percent, while Airports of Thailand were set to extend losses to a second session.

Vietnam’s main index dropped 2.2 percent, with real estate company Vingroup Joint Stock Co down nearly 3 percent. (With Reuters)
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