Shares cheer vaccine news

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    Share prices ended higher Tuesday as investors cheered the encouraging news on another coronavirus disease 2019 (COVID-19) vaccine.

    The Philippine Stock Exchange index (PSEi) was up 41.09 points to 6,959.14, a 0.49 percent hike.

    The broader all shares index was up 30.37 points to 4,103.74, a 0.75 percent hike.
    Gainers edged losers 126 to 98 with 41 stocks unchanged. Trading turnover reached P10.25 billion.

    The peso closed at 48.24 to the dollar, down from 48.225 on Monday.

    The currency opened at 48.20, an intraday high and hit a low of 48.26. Trading turnover reached $705.82 million.

    Luis Limlingan, managing director at Regina Capital and Development Corp., said the uptick was primarily due to the successive release of encouraging update regarding the development of vaccines against COVID-19.

    “The PSEi along with other regional markets jumped after preliminary coronavirus vaccine data from Moderna further lifted expectations of a strong economic recovery,” Limlingan said.

    Claire Alviar, analyst at Philstocks Financial Inc., however noted the PSEi “did not perform like the way it rallied when there was news about Pfizer and BioNTech’s COVID-19 vaccine” given that the market is now trading at a P/E (price earnings) ratio of 26x, “higher than its five-year average.”

    “Also, some investors have priced in the COVID-19 vaccine news after Pfizer’s vaccine development,” Alviar added.

    She said the market’s performance was a result of of “the growth of cash remittance year-on-year (that) brought positive sentiment, along with the improved data of October car sales.”

    Most actively traded BDO Unibank Inc. was up P2.70 to P95.30. Ayala Land Inc. was down P0.25 to P38.85. Bank of the Philippine Islands was down P0.40 to P82.60. MerryMart Consumer Corp. was down P0.13 to P4.70. Ayala Corp. was up P14 to P848. SM Investments Corp. was down P13 to P1,002. PLDT Inc. was up P8 to P1,388. Converge Information Communication Technology Solutions Inc. was up P0.42 to P15.66.