PHILIPPINE shares ended in positive territory on Tuesday as market sentiment improved on the expected arrival of coronavirus disease 2019 (COVID-19) vaccines in the country and on the strong performance of US markets.
The benchmark Philippine Stock Exchange index (PSEi) improved 41.07 points or 0.58% to close at 7,065.55, while the broader all shares index rose 17.36 points or 0.41% to 4,249.93.
Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a mobile phone message that the market improved on optimism about the government’s COVID-19 vaccination plan.
“The market cheered the news about the arrival of the much-awaited COVID-19 vaccines in the Philippines from the COVID-19 Vaccines Global Access (COVAX) facility. In line with this is the rollout, which is expected to start next week. Given this, hopes for economic recovery are growing,” Ms. Alviar said.
The country is expecting the arrival of 117,000 doses of the vaccine created by Pfizer/BioNTech this month through the COVAX facility — a global initiative to safeguard equal access to vaccines among nations.
Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said the PSEi’s close on Tuesday came on the back of the positive performance of US markets.
“The market managed to push even higher today as investors took cues from the US markets’ strong performance last night, as hopes over coronavirus vaccines’ rollout and a possible stimulus from the US government continue to affect sentiment positively,” Mr. Pangan said in a text message on Tuesday.
The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite rose 0.76%, 0.74%, and 0.95%, respectively, overnight after US Treasury Secretary Janet Yellen said the country can return to full employment in 2022 if the US Congress approves the proposed $1.9-trillion fiscal aid package.
Back home, sectoral indices at the PSE closed mixed. Holding firms increased 105.29 points or 1.47% to 7,232.51; services gained 6.47 points or 0.43% to 1,504.74; and financials went up 4.91 points or 0.33% to 1,493.26.
Meanwhile, property declined 15.41 points or 0.43% to 3,572.28; mining and oil retreated 25.27 points or 0.28% to 8,991.77; and industrials lost 25 points or 0.27% to 9,196.63.
Advancers beat decliners, 127 against 104, while 40 names ended unchanged.
Value turnover on Tuesday reached P12.27 billion with 30.44 billion issues switching hands, an increase from the P10.43 billion with 29.55 billion issues seen the previous day.
Net foreign buying amounted to P532.56 million, a turnaround from the net outflows worth P20.74 million seen on Monday.
“As we move away from its nearest support at 6,600, we may have to see if the 7,300 resistance area will be reached towards the end of the week,” Mr. Pangan said.
