Peso ends sideways; stocks recover amid deal for vax purchase


The local main equities index managed to rise Tuesday partly on news that the government secured a deal for Novavax vaccines from India and this optimism also benefited the peso.

The Philippine Stock Exchange index (PSEi) increased by 0.10 percent, or 6.62 points, to 6,559.08 points.

All Shares increased by 0.11 percent, or 4.28 points, to 3,954.15 points.

Most of the sectoral gauges also gained during the day namely Financials, 1.75 percent; Industrial, 1.18 percent; Services, 0.91 percent; and Mining and Oil, 0.36 percent.

On the other hand, Holding Firms shed 0.93 percent and Property, 0.13 percent.

Volume totaled 3.3 billion shares amounting to PHP5.9 billion.

Advancers led decliners at 118 to 97, while 41 shares were unchanged.

“Philippine shares reverse earlier losses this morning to close in the green as news reports say the government signed a supply deal for 30 million Novavax doses. Speculation is now arising as to how soon these said vaccines will arrive,” Luis Limlingan, Regina Capital Development Corporation head of sales, said.

Reports quoting vaccine czar Carlito Galvez said the agreement for the vaccine purchase was signed when he went to India last week.

The vaccines are expected to arrive in the second half of this year.

Limlingan said risk sentiments also got a lift from the continued reopening of economies worldwide in line with the rollout of the coronavirus disease 2019 (Covid-19) vaccination program.

Meanwhile, the positive close of the main equities index benefited the peso, which ended the trade sideways against the US dollar at 48.635 from 48.54 close Monday.

It opened the trade at 48.55 and traded between 48.66 and 48.51.

The average level for the day stood at 48.568.

The volume of trade totaled USD721.9 million, lower than the previous session’s USD798.55 million.

Source: Philippines News Agency