Stocks gain as Omicron fears wane

MANILA, Philippines — Local equities rose for the fifth consecutive session yesterday, along with most Asian stocks, amid waning fears about the economic impact of the Omicron coronavirus variant, while markets awaited US inflation data for clues on tapering.

The benchmark Philippine Stock Exchange index (PSEi) rallied to 7,234.92, up 87.62 points or 1.23 percent, while the broader All Shares index gained 37.04 points or 0.97 percent to close at 3,842.55.

The PSEi tracked global markets higher on easing Omicron fears as vaccine makers confirm that booster shots are enough to neutralize the new variant, AB Capital Securities said in a commentary.

Traders said there was renewed optimism amid the improvement in the COVID-19 situation and with the Omicron variant turning out to be less severe than expected.

Philippine shares climbed higher, coming on the back of improved investor optimism that the Omicron variant is not severe enough to derail the economic recovery, Luis Limlingan of Regina Capital said.

Total value turnover reached P8.614 billion. Market breadth was positive, with 108 gainers to 90 decliners, while 45 issues were unchanged.

This is fairly intuitive and expected in the context of (and exaggerated by) a harsh sell-off/risk off on Omicron last week, being met with encouraging news of early studies downplaying its severity and threat posed, analysts at Mizuho Bank said.

Investors now await the release of US inflation data for the effect it could have on the Fed’s meeting next week where it is expected to announce it will accelerate tapering of its bond-buying program.