The stock market rose Monday in the first trading day of 2021 on optimism about the economic outlook in 2021 and the rollout of vaccines in the Philippines.
The Philippine Stock Exchange Index climbed 57.79 points, or 0.8 percent, to 7,197.50 on a value turnover of P10 billion. Gainers edged losers, 124 to 121, with 36 issues unchanged.
MerryMart Consumer Corp. jumped 29.3 percent to P7.99, while Dito CME Holdings Corp., the third major mobile phone company, surged 19.4 percent to P13.02.
Major property developer Ayala Land Inc. advanced 2.7 percent to P42, while Megaworld Corp., the biggest lessor of office spaces, added 2.4 percent to P4.18.
Optimism about the economic outlook in 2021, meanwhile, helped Asian investors kick off the new year on a positive note Monday, as hopes surrounding the rollout of coronavirus vaccines offset a frightening surge in infections.
With uncertainty over Brexit and a new US stimulus gone, sights are now on the economic recovery from the calamity that was 2020, with a broad expectation that countries will enjoy strong rebounds as life gets back to some semblance of normal.
Vast amounts of government and central bank cash have been a crucial driver of a global rally in equities from their March troughs, and analysts expect loose monetary policies—particularly at the Federal Reserve—to stay in place for the foreseeable future.
“Stock markets are headed higher and they are headed higher without the old traditional valuation techniques” as long as the Fed “keeps the liquidity bubble going,” David Kotok, at Cumberland Advisors, told Bloomberg TV.
However, while the consensus is for a strong performance for markets this year, he did warn that the first quarter will likely be tough as vaccinations are administered but the virus continues to spread.
Seoul rallied 2.5 percent following strong export data, while Sydney put on more than one percent as there were signs a spike in new infections in the city was being brought under control.
Hong Kong rose, though China Mobile Communications, China Telecommunications Corp and China Unicom (Hong Kong) Limited all dipped more than three percent after they were delisted in New York to comply with an order by Donald Trump barring investment in firms with ties to the Chinese military.
State-owned oil giants CNOOC and Petrochina were also hit on speculation they could be next in line.
Shanghai, Singapore, Taipei, Mumbai and Jakarta also began the year on a positive note.
But Tokyo fell as investors fretted over reports that Japanese Prime Minister Yoshihide Suga was considering issuing a regional state of emergency for the capital and surrounding areas as new virus cases soar. Still, Rakuten Securities said the Nikkei could hit 30,000 by September as people are vaccinated.
The broad gains in Asia came after the Dow and S&P 500 finished at fresh records on Wall Street.
“COVID cases and vaccine distribution will remain the key focus for investors for now. The political forces that influenced markets late in 2020 have almost faded as the US election and Brexit have passed,” said Kerry Craig at JP Morgan Asset Management. With AFP
