PSEi up for 3rd day on vaccine rollout

MANILA, Philippines — Share prices sustained gains for the third straight day as the first rollout in the country of a COVID-19 vaccine injected investors with optimism of a faster economic recovery.

The benchmark Philippine Stock Exchange index (PSEi) finished at 6,919.54 yesterday, up 46.57 points or 0.67 percent.

Likewise, the broader All Shares index rose 14.52 points or 0.34 percent to close at 4,179.92.

A total of P9.887 billion worth of shares changed hands, but decliners outpaced advancers, 121 to 105, while 44 issues were unchanged.

In a market commentary, AB Capital Securities said the local market rallied anew as the vaccination drive in the country began.

“Yesterday, more than 750 people were vaccinated with the Sinovac vaccine. However, foreigners remained net sellers with P300 million, while value turnover amounted to P9 billion,” it said.

“The local index climbed in a broad-based rally as stocks tied to the economic reopening jumped on vaccine optimism, while tech names rebounded from steep losses the previous month. The US Congress is also moving fast forward, passing President Biden’s $1.9-trillion COVID-19 relief proposal,” said Luis Limlingan of Regina Capital.

Chris Mangun of AAA Equities, however, noted that despite the start of the vaccine rollout and easing of restrictions, investors are wary of rising inflation and the prolonged economic recovery.

“Trading volumes on blue chips continue to decline while volumes picked up on second and third liners. The PSEi may still test 7,000 before the end of the week,” he said.