Market down; ICTSI, Ayala Land advance

The stock market slipped Tuesday on mild profit taking, with investors trading cautiously ahead of the release of second-quarter earnings.

The Philippine Stock Exchange Index fell 14.39 points, or 0.2 percent, to 6,136.31 on a value turnover of P4.4 billion. Gainers, however, edged losers, 95 to 91, with 52 issues unchanged.

Universal Robina Corp., the biggest snack food maker, retreated 2.9 percent to P122.10, while SM Prime Holdings Inc. of the Sy Group, declined 2.2 percent to P31.

International Container Terminal Services Inc., the largest port operator owned by tycoon Enrique Razon Jr., climbed 4.1 percent to P101, while major property developer Ayala Land Inc. rose 2 percent to P765.

Hopes for a virus vaccine, meanwhile, helped push Asian equities higher Tuesday after promising results from two clinical trials, while traders were also cheered by news that EU leaders have finally hammered out a stimulus package for the bloc.

Hong Kong climbed 1.8 percent with support also coming from news that online payments giant Ant Group, an affiliate of Chinese e-commerce leader Alibaba, had moved toward a dual listing in the city and in Shanghai, in what could be among the biggest IPOs in years.

Shanghai closed up marginally after rallying more than three percent on Monday.

Sydney jumped more than two percent after Australia’s government said it would extend its own record stimulus program, with supplements to the unemployed and businesses struggling to retain staff continuing until at least the end of the year and likely beyond.

Tokyo rose 0.7 percent, while Mumbai, Seoul, Taipei, Jakarta and Wellington all jumped more than one percent. Singapore and Bangkok were also up.

The advance followed another record high for the Nasdaq, which was fueled by tech giants that have been big winners from the COVID-19 upheaval as more Americans work from home. The S&P 500 moved back into positive territory for the year.

The studies provided a much-needed shot in the arm for investors, who have been put on edge in recent weeks by worrying spikes in new infections around the world, causing a months-long surge across equities to stumble.

The new cases have forced authorities to reimpose containment measures, fanning concerns about an economic recovery that has been supported by trillions of dollars in government and central bank stimulus.

But two studies published in The Lancet medical journal provided some much-needed cheer, with a trial among more than 1,000 adults in Britain finding a candidate vaccine induced “strong antibody and T cell immune responses” against COVID-19.  

That came as another trial of more than 500 people in China showed most had developed a widespread antibody immune response.  

Meanwhile, British biotech firm Synairgen said a randomized trial of an aerosol-based treatment shows it could drastically reduce the number of new patients dying of the disease or requiring intensive care.

The positive news from the trials could be a major step towards the Holy Grail that analysts say will likely send markets soaring.

More than 20 candidate vaccines are currently being tested on humans. With AFP