PSEi rallies 5.23% on vaccine hopes

The local stock market rallied on Tuesday as investors cheered news of a recent positive development in a trial for a potential COVID-19 vaccine.

The bellwether PSEi gained 349.63 points or 5.23% to 7,035.48 at the closing bell. The broader All Shares increased by 135.35 points or 3.42% to 4,096.47.

“The PSEi gapped up and ended as Asia's best performer, up 5.23%. The is a reaction to the positive news from Pfizer's vaccine,” AAA Equities head of research Chris Mangun said.

On Wall Street, likewise, shares of S&P 500 and the Dow rallied sharply on bets that a full economic reopening was finally in sight following the first positive data from a late-stage COVID-10 vaccine trial. 

A vaccine jointly developed by Pfizer and BioNTech was 90 percent effective in preventing COVID-19 infections in ongoing Phase 3 trials, according to re report by Reuters. 

“The worst than expected contraction in GDP (gross domestic product) for the third quarter which was reported today, was ignored by investors as most look to the future,” Mangun said.

“The only concern is that the recent move is ‘too far, too fast’ and we may see a pull back in the coming days as the market corrects itself,” he said.

The Philippine economy continued to contract in the July to September period by 11.5%, an improvement from -16.9% recorded in the second quarter. 

More than 2.439 billion shares valued at P13.077 billion, changed hands. Advancers led decliners, 131 to 87, and 35 issues were unchanged. -NB, GMA News