Santa Claus rally halts 3-day PSEi downturn

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© PSE / Released Santa Claus rally halts 3-day PSEi downturn

MANILA, Philippines —The much-awaited Santa Claus rally snapped the three-day slide of the Philippine Stock Exchange index (PSEi) yesterday, buoyed by an optimistic view of the global economic outlook despite uncertainties surrounding the Omicron variant of the coronavirus.

The 30-company PSEi rallied to close at 7,248.05, up 128.86 points or 1.81 percent, while the broader All Shares index gained 41.23 points or 1.09 percent to finish at 3,838.45.

All sub-sectors ended in the green, with holding firms and property with the most gains.

Despite the uptick, however, trading volume was thin at P4.613 billion, although advancers dominated decliners, 115 to 58, while 49 issues were unchanged.

“Last minute buy-up in SM, Ayala Land and Ayala Corp. lifted the index at the close,” said AB Capital Securities.

Claire Alviar, research analyst at Philstocks Financial,  said investors hunted for bargains after the market declined for three consecutive days.

“In addition, the Philippines’ improvement in Bloomberg’s COVID-19 resilience ranking has provided a positive sentiment as well.

However, Alviar said the rally was weak, with a net value turnover of only P4.05 billion, lower than this month’s average of P7.54 billion.

“This shows that some investors are on the sidelines already due to half-day trading (today) ahead of the holiday,” she said.

Meanwhile, global markets, including all three major indexes on Wall Street, also recorded strong gains, supported by positive economic data and developments around COVID-19.

However, Mizuho Bank analysts struck a cautious note, saying as the holidays approach, “we should take heed not to over-indulge in growing optimism, especially with volatility swinging between COVID-19 spread and severity.”