Stocks rise as NCR virus reproduction rate drops

STOCKS posted gains on Wednesday as report from an independent research group showed the coronavirus disease 2019 (COVID-19) reproduction rate in the National Capital Region (NCR) continued to decline.

The Philippine Stock Exchange index (PSEi) went up by 9.53 points or 0.13% on Wednesday to close at 6,890.73, while the broader all shares index rose 21.58 points or 0.50% to 4,286.57.

“Market sustained its recovery today up 9.53 points, though off highs as investors’ confidence improve on news that the Philippines could possibly be in the homestretch of its battle against the spread of the COVID-19 Delta variant, especially in Metro Manila where the reproduction number has started to decline,” Papa Securities Corp. Equities Strategist Manny P. Cruz said in a text message on Wednesday.

“The minimal decline in Chinese markets that reopened today also aided the rally today,” Mr. Cruz said.

Fredegusto Guido P. David, a research fellow at the OCTA Research Group, said in a social media post on Tuesday that the reproduction number in the country’s capital slipped to 1.03 from 1.33 as COVID-19 infections in Metro Manila continue to decline.

The Health department logged 16,361 new COVID-19 infections on Tuesday, bringing total active cases to 171,142 and the country’s tally to 2,401,916.

Meanwhile, Chinese stocks fell on Wednesday, led by banking and consumer staples, while real estate shares jumped after developer Evergrande assured it could make a bond interest payment.

The CSI300 index fell 1.1% to 4,801.94 by the end of the morning session, while the Shanghai Composite Index lost 0.3% to 3,603.41, Reuters reported.

Sectoral indices were split. Services climbed 54.38 points or 2.93% to 1,905.63; mining and oil gained by 205.04 points or 2.24% to finish at 9,340.91; and industrials improved by 93.58 points or 0.93% to 10,095.66.

Meanwhile, property lost 26.18 points or 0.86% to end at 2,992.46; financials declined by 9.66 points or 0.68% to 1,408.79; and holding firms shed 19.60 points or 0.28% to 6,937.44.

Value turnover decreased to P6.49 billion with 705.34 million shares switching hands on Tuesday, down from the P7.08 billion with 860.44 million issues traded the previous day.

Advancers outnumbered decliners, 128 against 82, as 37 names closed unchanged on Wednesday.

Foreigners turned buyers, logging P33.17 million in net purchases on Wednesday, a turnaround from the P216.35 million in net outflows seen on Tuesday.

Timson Securities, Inc. Trader Darren Blaine T. Pangan said he expects the market to trade between 6,780 and 7,000 in the coming days following the decrease in the COVID-19 reproduction number in the country’s capital. —

K.C.G. Valmonte


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Reuters