SHARE prices closed higher Friday with investors upbeat after a series of developments on the vaccine front, which hold out the prospect of normalizing the economy after the pandemic.
The benchmark Philippine Stock Exchange index (PSEi) rose 91.73 points or 1.28% to 7,246.16, while the broader all-shares index was up 47.81 points or 1.12% at 4,318.73.
China Bank Securities Research Director Rastine Mackie D. Mercado said investor optimism was likely due to the start of the vaccine rollout in some countries.
“The strength of the market may be attributable to a risk-on stance stemming from investor optimism following vaccine developments (such as) FDA panel endorsement of emergency use of Pfizer’s COVID-19 vaccine (and) more countries preparing for vaccine rollout,” Mr. Mercado told BusinessWorld in an email.
Other sources of market buoyancy include improved consumer and business confidence as revealed by the central bank’s fourth quarter business and consumer expectations survey, he said.
He noted that the market could be ”choppy” in the coming weeks because shares have hit “lofty valuations.”
“Downside risks such as continuing delays in US stimulus talks, and the possibility of a no-trade deal Brexit may dampen investor sentiment, leading to possible declines,” Mr. Mercado said.
Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said that the market was hoping that the wider distribution of COVID-19 vaccines will help the economy recover faster.
“Investor sentiment may be described as optimistic, since market participants seem to be okay holding on to their positions over the weekend,” he told BusinessWorld in a Viber message.
The Philippine market ran against the grain of the US indices. The Dow Jones Industrial Average and S&P 500 Index both recorded losses. Asian stocks were mixed, with the Nikkei 225, China’s CSI 300, the S&P/ASX 200 and the MSCI AC Asia Pacific falling.
In the Philippine market, financials rose 12.36 points or 0.84% to 1,486.60. Industrials were up 22.47 or 0.24% at 9,420.92. Holding firms rose 86.28 points or 1.17% to 7,455.87. Services were up 3.82 points or 0.25% at 1,533.56. Mining and Oil rose 166.49 points or 1.82% to 9,305.97. Property was up 98.61 points or 2.72% at 3,719.23.
Advancers led decliners 155 to 77, with 40 unchanged.
Value traded on Friday was P9.8 billion on volume of 75.92 billion shares. On Thursday the correponding totals were P7.64 billion and 150.03 billion shares. — Angelica Y. Yang