Market slips amid U.S. focus
Aside from the Philippines, the think tank also projects Indonesia, Thailand, Taiwan and Vietnam to achieve herd immunity by 2023
Profit taking dragged down the market index after successive days in the green as investors refocused on the United States with the release of the US Federal Reserve’s Beige Book.
The book showed that the economy grew moderately in April and May, as consumer spending and manufacturing activity picked up despite supply bottlenecks.
Regina Capital Development Corp. managing director Luis Limlingan said the economy seems to be on track for an upward trajectory, but not as bullishly as what the market is expecting.
Others were reviewing the latest study from Moody’s Analytics as to when the country would achieve herd immunity.
The country is expected to vaccinate 65 percent of its population by 2023, as per the report.
Aside from the Philippines, the think tank also projects Indonesia, Thailand, Taiwan and Vietnam to achieve herd immunity by 2023.
Furthermore, putting the country back into perspective, Moody’s Analytics only expects the country to register pre-pandemic growth levels by the third quarter 2022 due to the challenges faced by the national government to procure and allot vaccines.
Bellwether shares closed at 6,791.87 down 49.82 points or 0.73 percent on turnover of 3.71 billion shares valued at P18.78 billion.
Near prospect positive
BDO Unibank Inc. first vice president Jonathan Ravelas said the market has still some gas to try the 6,850 to 6,900 levels in the near-term. “This was buoyed by prospects of further reopening the economy. But, technical indicator RSI (relative strength index) is signaling an overbought condition. An indication that prices may top out soon,” he explained.
Most Asian markets rose with focus on the upcoming release of key US jobs data, while traders were also trying to gauge when the Federal Reserve will begin reconsidering its ultra-loose monetary policies in light of a robust economic recovery.
Oil prices also extended gains, fueled by growing optimism that the reopenings and vaccine rollouts will lead to a surge in activity over the coming months and ramp up demand.