Stocks rise on hopes of weaker Omicron variant

Published December 9, 2021, 4:35 PM

by James A. Loyola

The local stock market rose on the back of growing optimism that the Omicron variant will not be as bad as initially feared.

The main index jumped 87.62 points or 1.23 percent to close at 7,234.92 as banks led the advance with only the Property sector posting a marginal decline.

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Volume improved to 1.87 billion shares worth P8.61 billion as gainers edged out losers 108 to 90 with 45 remaining unchanged.

“Philippine shares climbed higher on Thursday, coming on the back of improved investor optimism that the Omicron variant is not severe enough to derail the economic recovery,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that investors also “reacted favorably to a four-month low November CPI print of 4.2 percent (versus 4.6 percent in October) and an improved unemployment rate of 7.4 percent (vs. 8.9 percent in October).

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local bourse extended its rally to a 5th straight day. The rally was sustained by optimism towards the Philippines’ improving COVID-19 situation and the positive spillovers from Wall Street’s overnight rise.”

He added that, “Preliminary evidence which shows that the Omicron variant may cause milder infections compared to the Delta variant according to the World Health Organization also helped in lifting sentiment.”

 
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