The stock market fell Monday for the third straight session on another bout of profit taking and worries the damage wreaked by recent typhoons could dampen the growth of the domestic economy.
The Philippine Stock Exchange Index dropped 51.83 points, or 0.7 percent, to 6,918.05 on a value turnover of nearly P8.8 billion. Gainers, however, beat losers, 119 to 109, with 30 issues unchanged.
GT Capital Holdings Inc. of the Ty Group declined 5.2 percent to P525, while SM Prime Holdings Inc. of the Sy Group slipped 2.4 percent to P37.80.
Megawide Construction Corp., however, advanced 7.9 percent to P9.44, while Alliance Global Group Inc. of tycoon Andrew Tan rose 3.2 percent to P9.21.
Optimism for a coronavirus vaccine, meanwhile, helped push the rest of Asian markets higher Monday while traders were also cheered by a pledge from President-elect Joe Biden’s team that they were not planning an economically damaging nationwide lockdown despite surging cases.
However, while there is growing expectation a treatment will be available in the new year, gains were tempered by worries about a spike in the disease in the US and across Europe.
After a painful October, equities have enjoyed a huge bounce this month after Biden’s election win, which was followed by news that Pfizer and BioNTech’s vaccine candidate had proved 90 percent effective, lifting hopes the world can soon begin returning to normal.
“The vaccine enthusiasm booster shot remains the dominant narrative, even with surging infections across the US,” said Axi strategist Stephen Innes. “Indeed, the vaccine could prove to be the ultimate market backstop and recessionary economic plugger.”
Tokyo led the gains, jumping more than two percent, helped by news that the world’s number three economy had surged out of recession in the third quarter, expanding a forecast-beating five percent thanks to a pick-up in domestic demand and exports.
Sydney rose 1.2 percent before trading was suspended for the day owing to what the stock exchange said were data issues.
Shanghai and Seoul put on two percent and Taipei more than that, while Singapore added more than one percent. There were also healthy gains in Hong Kong, Jakarta, Bangkok and Wellington.
The advances came after another strong performance on Wall Street last week, where the S&P 500 finished at a record high. All three main New York indexes were up in futures trading.
Traders also cheered the signing Sunday of the world’s biggest free-trade deal by 15 Asia-Pacific countries—including Japan and China—that covers about a third of the planet’s GDP. The agreement was seen as an example of international cooperation following years of Trump pushing unilateralist policies.
“The fact that the agreement got over the line after eight years of negotiation between a widely disparate group of nations, is an achievement in itself,” said OANDA’s Jeffrey Halley.
“That has left the Asia-Pacific with a feeling that there is life in the world, with or without the United States.” With AFP
