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By Denise A. Valdez, Senior reporter
THE BELLWETHER The Philippine Stock Exchange Index (PSEi) rose to the 7,000 level on Tuesday, reaching its highest level since February, as the positive development on a possible vaccine against the coronavirus disease 2019 (COVID-19) improved investor confidence around the world.
The main index closed at 7,035.48 on Tuesday, a jump of 349.63 points or 5.22% from the previous session. The broadest index of all stocks was up 135.35 points or 3.41% to 4,096.47.
Tuesday’s jump is the highest registered by the PSEi since March 26, when it registered an increase of 373.82 points or 7.44%. Yesterday’s close is also the PSEi’s best since February 24, when it ended at 7,187.44.
The index maintained its uptrend throughout the trading session. It opened at 6,792.58, which was already its low of the day, while its closing level was its intraday high.
“Local stocks soared after BioNTech SE and Germany-based Pfizer Inc. announced that their COVID-19 vaccine candidate achieved ‘success’ in the first interim analysis of a phase 3 study,” Regina said Capital Development Corp., sales director Luis A. Limlingan said in a mobile message.
“Positive sentiment spreads across all equity markets… The index rally was further driven by the rise of heavyweights such as SM Investments Corp. (11.11%), Ayala Land, Inc. (8.79 %) and SM Prime Holdings, Inc. (6.83%), ”said Claire T. Alviar, research associate at Philstocks Financial, Inc. in a text message.
“[P]The positive sentiment can still extend in the coming days, but we also expect a setback given the rebound, ”he added.
Tuesday’s operations coincided with the release of third-quarter gross domestic product (GDP) data, which showed a contraction of 11.5%, which kept the economy in recession.
Third quarter performance led the annual average to a 10% contraction. The government expects the economy to contract between 4.5% and 6.6% this year.
“[G]”Given the market performance, we believe investors ignored the third quarter GDP data and focused on the positive developments on the COVID-19 vaccine,” said Ms Alviar. “We think it is because investors are looking to the future and expecting an economic recovery.”
All the industry indices closed higher on Tuesday: holding companies at 492.88 points or 7.08% at 7,446.23; the property in 224.63 points or 6.94% at 3,457.04; finance at 43.03 points or 3.35% to 1,326.14; services by 26.41 points or 1.74% to 1,544.25; industrial by 57 points or 0.63% to 9,085.59; and mining and oil at 21.48 points or 0.26% at 8,175.19.
Value turnover stood at P13.08 billion with 2.44 billion issues changing hands, compared to P8.02 billion in the previous session with 1.71 billion issues. The leads beat the declines, 131 to 87. Some 35 names ended unchanged.
Foreign investors posted net inflows of P2.28 billion on Tuesday versus net outflows of P394.7 million in the previous session.
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