PSEi surges 5.23% to 9-month high on vaccine optimism

The Philippine Stock Exchange index (PSEi) surged by 5.23% to close at 7,035.48 on Tuesday, November 10, its highest level in nine months, driven by investor optimism over a COVID-19 vaccine.

The PSEi's performance made it the best-performing index in Asia for the day, with all subsectors showing gains, particularly holding firms which increased by 7%.

Heavy trading volume, reaching P13.08 billion, indicated strong investor participation.

Foreign investors showed net buying activity, with P5.8 billion in purchases compared to P3.55 billion in sales.

The positive market sentiment was largely influenced by the announcement that BioNTech and Pfizer's COVID-19 vaccine demonstrated 90% efficacy in its Phase 3 trial.

Despite a worse-than-expected contraction in the Philippines' third-quarter GDP by 11.5%, investors focused on future economic recovery.

Analysts suggest the recent market surge may be 'too far, too fast,' potentially leading to a pullback.