Philippine shares rally on vaccine optimism

Philippine shares extended their rally on Wednesday amid improved investor sentiment due to increased optimism on the arrival of additional COVID-19 vaccines.

The bellwether PSEi gained 50.66 points or 0.79% to 6,497.01 at the closing bell. The broader All Shares increased by 21.61 points or 0.55% to 3,934.93.

“The local bourse has recovered in the last hours of trading as optimism on the arrival of additional COVID-19 vaccines in the Philippines won over lingering fears in the economy,” Philstocks Financial equity analyst Claire Alviar said.

“Before the market rebounds, it was trading in the red following the decline of the US markets overnight as worries over economic recovery heightened,” she said.

On Wednesday morning, an additional 400,000 doses of Sinovac vaccine arrived at the Ninoy Aquino International Airprot (NAIA). 

Moreover, 979,000 AstraZeneca vaccine doses may also arrive this week.

The Philippines is expecting 1 million more Sinovac vaccine doses it procured for P700 million. The vaccine, named CoronaVac, is administered in two doses.

Aside from Sinovac, other COVID-19 vaccines issued emergency use authorization by the Philippine Food and Drug Administration are Pfizer-BioNTech, AstraZeneca and Sputnik V. 

“The sentiment has improved as fears of the government losing control over the pandemic situation has subsided,” AAA Equities head of research Chris Mangun said.

“Overall, investors will remain cautious until there are clearer signs of improvement. The main index is right at its resistance of 6,500,” he said.

More than 9.27 billion shares valued at P21.32 billion, changed hands. Decliners led advancers, 98 to 90, and 64 issues were unchanged. — BM, GMA News