Moderna’s positive vaccine devt raises market

EARLY positive results from Moderna Inc.’s experimental coronavirus disease 2019 ( Covid- 19) vaccine boosted the local stock market on Tuesday.

The Philippine Stock Exchange Index (PSEi) climbed by 1.4 percent, or 76.50 points, to 5,555.85, while wider All Shares increased by 1.03 percent, or 34.32 points, to close at 3,359.82.

“The optimism flowed from the early positive results posted by Moderna Inc.’s experimental [Covid-19] vaccine,” Philstocks research associate Japhet Tantiangco said.

Tantiangco explained that any developments to combat Covidwould trigger hopes in the market, as the pandemic remains to be the core problem hindering the economy to operate at its full productive capacity.

Likewise, Regina Capital Development Corp. head of sales Luis Limlingan attributed Tuesday’s positive result to the potential vaccine.

“Philippine shares rallied as news from a Moderna trial stroked optimism about a potential coronavirus vaccine,” Limlingan said.

However, Tantiangco noted that the net value turnover for trading has been “tepid,” meaning many are still waiting on the sidelines as risks continue to remain high because of the pandemic.

“The low value turnover and the continuous net foreign outflows are conveying that the market’s rally today could be unsustainable,” Tantiangco furthered.

Wall Street rallied on the back of the successful early stage trial of the vaccine.

The Dow Jones, S&P 500 and Nasdaq rose 3.85 percent, 3.15 percent and 2.44 percent, respectively.

Neighboring Asian markets took the positive cues as Tokyo was up 1.49 percent, Shanghai inched up 0.81 percent, Hong Kong climbed 1.96 percent, Seoul rose 2.25 percent, Jakarta gained 0.95 percent, Singapore improved by 1.82 percent, Thailand better by 2.28 percent and Ho Chi Minh increased by 1.07 percent.

Most local sectors improved with holding firms leading at 2.26 percent, while mining and oil shed 0.19 percent.

Total volume turnover was at 600.65 million shares valued at P4.05 billion.

Gainers barely edged out losers at 90 to 80, while 44 securities were unchanged.