The rollout of the Duterte administration's COVID-19 vaccination program has had a positive impact on the local stock market, raising hopes of a gradual economic recovery.
Optimism over vaccine rollout reflected in local stock market
THE rollout of the Duterte administration's COVID-19 vaccination program has had a positive impact on the local stock market, according to market analysts.
The Philippine Stock Exchange index (PSEi) increased by 0.68 percent, or 46.57 points, to 6,919.54 points.
All shares followed with a jump of 0.35 percent, or 14.52 points, to 4,179.92 points.
Half of the sectoral gauges tracked the main index namely the Holding Firms, which rose by 1.40 percent, and Industrial and Property, both of which increased by 1.08 percent.
On the other hand, Financials slipped by 1.41 percent, Mining and Oil, 0.54 percent; and Services, 0.29 percent.
Volume totaled 126.72 billion shares amounting to P9.89 billion.
Losers led gainers at 121 to 105, while 44 shares were unchanged.
“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,” Luis Limlingan, Regina Capital Development Corporation head of sales, said.
He also cited as a plus to investors’ optimism the positive developments on the Biden administration’s proposed $1.9-trillion COVID-19 stimulus program, which was approved by the United States House of Representatives over the weekend and awaiting Senate’s approval.
Local bankers are also betting on the COVID-19 vaccination program as a starting point in the gradual recovery of various sectors of the economy.
“[The vaccination program] would help reduce new COVID-19 cases that would also help justify further reopening of the economy and help improve economic recovery prospects and valuations,” Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said. (ONT/With report from PNA)