Stocks climb for 3rd straight day; Metro Pacific, banks up

The stock market rallied for the third straight day Thursday, joining most of Asia as investors tracked renewed US stimulus talks in Washington while the mood remains upbeat owing to vaccine developments.

The Philippine Stock Exchange Index climbed 113.51 points, or 1.6 percent, to 7,194.13 on a value turnover of P10.7 billion. Gainers beat losers, 121 to 98, with 43 issues unchanged.

Security Bank Corp., the seventh largest lender in terms of assets, advanced 6.9 percent to P132, while Metro Pacific Investments Corp., which is into toll roads, water and electricity distribution, hospitals and infrastructure, rose 6.4 percent to P4.50.

Bank of the Philippine Islands, the third-largest bank, increased 5 percent to P84, while Robinsons Land Corp., the property unit of the Gokongwei Group, added 4.3 percent to P18.46.

Meanwhile, Asian markets mostly rose Thursday. After the first approval of a Covid-19 drug by Britain on Wednesday, traders are now focusing on regulators in the US and Europe, and the rollout that will allow life to get back to normal and the economy back on track.

Observers pointed to a pick-up in Treasury yields that suggests investors expect interest rates to rise in the future—a sign that the economy is improving.

“The market has almost immediately priced in a better-than-expected 2021, particularly in the second half, and that’s what we are seeing here, and on the yield curve as well,” Alicia Levine, at BNY Mellon Investment Management, told Bloomberg TV.

“The message here really is that better days are ahead and that dips and consolidations are eminently buyable.”

Wall Street enjoyed another broadly positive day, with the S&P 500 chalking up another record close, while the Dow also advanced, though the Nasdaq inched down from Tuesday’s all-time high.

Asia struggled in early trade but most markets managed to break out as the day wore on.

Hong Kong, Sydney, Seoul, Singapore, Jakarta and Bangkok all rose though Shanghai, Taipei and Wellington were slightly lower.

Tokyo and Mumbai were barely moved.

While the global rally that characterized November has slowed this week, the general consensus is that a bright future awaits.

“Following two weeks of terror in March, the post-pandemic market narrative has moved seamlessly from policy-driven to mobility-driven to vaccine-driven,” said Axi strategist Stephen Innes.

“The vaccine has been the big prize for risk markets as healthcare concerns see a rapid drop in the global virus counts in the second half of next year. This will result in a collective demand lift for the world economy, (while) global geopolitical risk has also diminished after the US presidential election.”

Traders were keeping tabs on developments in Washington after House Speaker Nancy Pelosi threw her support behind a $908-billion compromise relief package proposed by a bipartisan group of lawmakers on Tuesday. The proposal is half what Democrats had previously been pushing for.

Still, the two parties remain far apart on their plans, with Republican Senate Majority Leader Mitch McConnell insisting on a much more limited measure. With AFP