Most local stocks gained in thin trading on Tuesday as global markets cheered a promising coronavirus vaccine being developed by an American biotech firm alongside the US central bank’s commitment to provide more economic stimulus.
The main-share Philippine Stock Exchange index (PSEi) firmed up by 76.5 points, or 1.4 percent, to close at 5,555.85, tracking upbeat US and regional markets.
Overnight, Wall Street welcomed news that US drug maker Moderna found positive results in the first eight human trials of an experimental COVID-19 vaccine.
“At the local scene, eyes are still likely on the number of daily infections with MECQ (modified enhanced community quarantine) in place, and that if a stronger wave and hence another lockdown would occur,” local stock brokerage Papa Securities said.
Christopher Mangun said the PSEi started strong on Tuesday as the investor sentiment improved along with the rest of the world on positive news about a potential COVID-19 vaccine from Moderna, one of eight firms doing human clinical trials for a vaccine against COVID-19. But while there was a big jump in early trade, Mangun noted that the upside was limited as investors were quick to take profits, although still leaving the market with substantial gains.Domestic investors kept the market afloat as there was P417.76 million in net outflow from foreign investors. There has been net foreign selling for 10 consecutive trading sessions.
The holding firm counter rose by 2.26 percent, leading the market’s gains, while the financial and services subindices likewise rose by over 1 percent.
The industrial and property counters both rose by less than 1 percent.
On the other hand, the mining/oil counter slipped by 0.19 percent.
The PSEi was led higher by JG Summit, which gained 5.75 percent. The group’s airline business under Cebu Air is seen to benefit if and when a COVID-19 vaccine would come to market. —Doris Dumlao-Abadilla INQ