Philippine shares jumped back to the 7,000 level on Tuesday, November 10, as investors grew more optimistic over a COVID-19 vaccine and brushed off the slow economic recovery of the country.
The Philippine Stock Exchange index (PSEi) gained 5.2% at the close, reaching a 9-month peak of 7,035, the highest level since February.
The PSEi was Asia’s best performer on Tuesday, with all subsectors in the green, led by holding firms which posted a 7% gain.
A total of 26 blue chips posted gains, with SM Investment stocks being the most actively traded and gaining over 11%.
The volume of trading activity was so high that stock brokerage firms like COL Financial experienced “slower processing speeds” during the early morning trade.
Volume turnover reached 2.44 billion shares valued at P13.08 billion.
Foreign buying reached P5.8 billion, overtaking foreign selling which stood at P3.55 billion.
The Philippines followed the trend in western markets, after Germany-based BioNTech and Pfizer announced that their COVID-19 vaccine was 90% effective in its Phase 3 trial.
Based on supply projections, the companies said they expect to supply up to 50 million vaccine doses globally in 2020, and up to 1.3 billion doses in 2021.
The Philippines’ dismal 3rd quarter gross domestic product performance seemed to have been brushed off by traders on Tuesday.
The economy shrank at a slower rate of 11.5% in the 3rd quarter, compared to the 16.9% dip in the 2nd quarter. But this was worse than analysts’ projected contraction of around 9%, and is among the worst in Asia. – Rappler.com