Fresh vaccine hopes propel stocks higher

MANILA, Philippines — Share prices got a much-needed boost from another COVID-19 vaccine breakthrough, halting the market’s decline over the past three trading sessions.

Investors yesterday rejoiced on news that US biotech firm Moderna’s experimental COVID-19 vaccine appears to be 94.5 percent effective. It marked the second time this month that a company unveiled such encouraging numbers about a vaccine, following Pfizer’s similar announcement, and boosting hopes that the global economy can return to some semblance of normal next year.

The benchmark Philippine Stock Exchange index or PSEi rose 41.09 points or 0.59 percent to 6,959.14, while the broader All Shares index added 30.37 points, or 0.74 percent, to settle at 4,103.74.

“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. managing director Luis Limlingan said.

Local counters reflected the positive sentiment as all sectors closed in the green.

Value turnover expanded from Monday’s P8.77 billion to P10.25 billion, although foreign funds remained net sellers for a third day.

Market breadth stayed positive, with advancers extending its lead over decliners, 126 to 98, while 41 shares were unchanged.

“The vaccine driven fervor had continued into the fresh week with even better trial results further inspiring markets to anticipate a virus-free reality in the not too far away future,” said Jingyi Pan, senior market strategist with IG in Singapore.