Fresh vaccine hopes end PHL stocks’ losing streak

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By Denise A. Valdez, Senior Reporter

PHILIPPINE SHARES bounced back on Tuesday to snap a three-day losing skid following positive news on another coronavirus disease 2019 (COVID-19) vaccine candidate.

The 30-member Philippine Stock Exchange index (PSEi) grew 41.09 points or 0.59% to close at 6,959.14. The broader all shares index also increased 30.37 points or 0.74% to end at 4,103.74.

The index stayed in green territory all throughout Tuesday’s trading. It opened at 6,950.52 and hit a low of 6,921.12—still higher than Monday’s close of 6,918.05. It peaked at 6,971.60 before settling a little lower in the last minutes of the session.

“The bourse, along with other Asian markets, followed the performances of the US indices after Moderna reported preliminary phase three trial data showed that its COVID-19 vaccine is 94.5% effective in preventing the coronavirus,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message.

Moderna Inc.’s experimental vaccine is 94.5% effective in preventing COVID-19 based on interim data from a late-stage trial, the company said on Monday, becoming the second US drugmaker to report results that far exceed expectations, Reuters reported.

Together with Pfizer Inc.’s vaccine, which is also more than 90% effective, and pending more safety data and regulatory review, the United States could have two vaccines authorized for emergency use in December with as many as 60 million doses of vaccine available this year.

“The PSEi along with other regional markets jumped after preliminary coronavirus vaccine data from Moderna further lifted expectations of a strong economic recovery,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

However, Ms. Alviar of Philstocks noted the PSEi’s rally is relatively weaker compared to how it reacted when Pfizer and BioNTech came out with its vaccine news.

“Also, some investors have priced in the COVID-19 vaccine news after Pfizer’s vaccine development,” she added.

All sectoral indices closed higher on Tuesday: financials by 15.46 points or 1.16% to 1,343.61; property by 33.94 points or 0.97% to 3,513.11; services by 9.92 points or 0.64% to 1,543.61; holding firms by 29.06 points or 0.4% to 7,181.43; industrials by 30.51 points or 0.33% to 9,139.74; and mining and oil by 11.67 points or 0.14% to close the session at 8,170.77.

Value turnover stood at P10.25 billion on Tuesday with 2.49 billion issues switching hands, improving from the previous day’s P8.77 billion with 2.36 billion issues.

Advancers outpaced decliners, 126 against 98. Some 41 names ended unchanged.

Foreign investors remained net sellers, but the net outflows were trimmed to P723.78 million on Tuesday against P1 billion in the last session.