Stocks snap skid as sentiment turns positive toward COVID-19

MANILA, Philippines — Local stocks bucked yesterday’s downturn in most emerging Asian markets, as investor sentiment turned positive on the COVID-19 situation.

The benchmark Philippine Stock Exchange index (PSEi) rallied by 120.13 points or 1.66 percent to close at 7,343.96, recovering lost ground from the prior two-day slump.

The broader All Shares index, meanwhile, gained 37.16 points or 0.97 percent to close at 3,882.40.

Total value turnover, however, was thin at P4.952 billion. Market breadth, nevertheless, was positive, 100 to 85, while 56 issues were unchanged.

“Investors pushed the local stock market higher in anticipation of economic reopening, as the daily growth rate of new cases start to plateau and the national vaccination rate reaches 50 percent,” AB Capital Securities said in a note.

The total number of new daily infections subsided yesterday, falling below the 30,000 mark for the first time in a week.

In a separate commentary, D.A. Market Securities said stocks rose after a two-day drop as health officials said recent infections have been milder than those seen in previous waves.

2TradeAsia president Grace Cerdenia said that China’s latest rate cut also added to optimism as this was perceived to ripple similar moves from the region’s central banks to counter the economic impact of Omicron.

China cut a key interest rate for the first time in almost two years, as official figures showed its economic growth had slowed.

Most emerging Asian stock markets turned lower yesterday as investors prepared for possible faster US interest rate hikes after Treasury yields hit pre-pandemic highs.