Stocks resume rally; ICTSI, Alliance Global lead gainers

The stock market rose Monday over prospects of a strong recovery in 2021, the rollout of vaccines in the UK, and the first expected drug approval in the US this week.

The Philippine Stock Exchange Index climbed 69.11 points, or 1 percent, to 7,203.67 on a value turnover of P9.6 billion. Gainers beat losers, 122 to 114, with 37 issues unchanged.

Dito CME Holdings Corp., the third major major mobile phone company, jumped 10 percent to P7.61, while Alliance Global Group Inc. of tycoon Andrew Tan advanced 4.6 percent to P10.56.

International Container Terminal Services Inc., the biggest port operator and owned by tycoon Enrique Razon Jr., rose 4.1 percent to P126, while SM Prime Holdings Inc. of the Sy Group added 2.9 percent to P38.70.

The rest of Asian equity markets were mixed Monday following last week’s rally as investors prepare for a big week that could see the vaccine rollout begin in earnest and US lawmakers agree a new stimulus, while post-Brexit trade talks remain on a knife-edge.

Hong Kong fell more than one percent and Shanghai sank 0.8 percent, with traders unmoved by data showing Chinese exports expanded in November at their fastest pace in almost three years. Tokyo slipped 0.8 percent.

But there were gains in Seoul, Sydney, Mumbai, Taipei, Singapore, Jakarta and Wellington.

But while the general consensus is for a strong recovery in 2021 as billions are inoculated, the surge in virus cases around the world and ongoing China-US tensions continue to keep a lid on sentiment.

Regional traders struggled to build on last week’s advances, despite all three Wall Street indexes chalking up records Friday thanks to signs of movement in US stimulus talks and hopes for the vaccine.

Optimism US lawmakers will agree a rescue package was boosted Friday with data showing the world’s top economy created far fewer jobs than forecast in November as the country is battered by a jump in infections that is forcing leaders to impose containment measures.

Senate Republican Leader Mitch McConnell and Democratic House Speaker Nancy Pelosi have revived efforts to hash out a deal for more aid, with both recognizing the need for help for Americans as Christmas approaches. 

Senators and their teams worked all weekend on a detailed bill, which “will probably come out early this week,” Republican Senator Bill Cassidy told “Fox News Sunday.”

Pelosi has agreed to make the proposal the basis for negotiations on a final text.

Traders are also keeping tabs on the deployment of vaccines around the world, with Britain in line to start giving jabs this week, while US approval of its first drug could come as soon as Friday. Belgium, France, and Spain have said jabs will begin in January for the most vulnerable.

The expected vaccine rollout is “continuing to help share markets look through the current problems with the virus and its economic impact”, said Shane Oliver, at AMP Capital Investors.

The World Health Organization said 51 candidate vaccines are currently being tested on humans, with 13 reaching final-stage mass testing. With AFP