Philippine stocks failed to track the gains of Asian shares, as the local stock index dropped by 0.25 percent or or 51.83 points to 6,918.05 points.

A local analyst said the growing number of coronavirus disease 2019 (Covid-19) cases worldwide and profit-taking clobbered the Philippine Stock Exchange Index (PSEI) on Monday.

“Philippine shares slumped on fears that rising coronavirus infections may slow the recovery in the global economy and fuel demand,” said Luis Limlingan, Regina Capital Development Corporation head of sales.

But Asian markets rose on news on positive developments for a Covid-19 vaccine, particularly from Pfizer that announced last week that trials for its vaccine showed 90-percent effectiveness.

“The vaccine enthusiasm booster shot remains the dominant narrative, even with surging infections across the US,” Axi strategist Stephen Innes said. “Indeed, the vaccine could prove to be the ultimate market backstop and recessionary economic plugger.”

Tokyo led the leaders in Asian stocks, jumping by more than 2 percent. Investors in Tokyo were also upbeat that the Japanese economy has exited recession in the third quarter.

Meanwhile, Sydney was up 1.2 percent before trading was suspended on
data issues. Shanghai and Seoul rose 2 percent each, while Taipei added more than 2 percent.

Singapore was up more than 1percent while gains were also registered in the stock markets of Hong Kong, Jakarta, Bangkok and Wellington.

In the local front, the All Shares barometer followed tracked PSEI with a 0.25-percent drop, or 10.18 points, to 4,073.37 points.

Most of the sectoral indices followed the main index led by mining and oil falling by 1.69 percent, while property declined by 1.40 percent; holding firms, 0.88 percent; and services, 0.48 percent.

On the other hand, industrial rose by 0.41 percent and financials by 0.12 percent.
Volume totaled 2.36 billion shares amounting to P8.77 billion, while gainers beat losers at 119 to 109. Thirty 30 shares were
unchanged. CURRENTPH