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Buying rules ahead of inflation result

Up 75.55 points, the Philippine Stock Exchange index closed at 7,130.74

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People visit a Christmas market in Berlin, Germany. The fourth wave of the Covif-19 pandemic could reach a ‘sad peak’ in intensive care units across Germany around Christmas even if the measures just agreed were implemented immediately, the country’s health officials said. / Stefan Zeitz/Xinhua

Local shares were bought ahead of the release of inflation figures and as the country remained free of any Omicron cases for now.

The consumer price index for November will be released today and many are expecting this to fall below four percent which is within the acceptable range of the Bangko Sentral ng Pilipinas (BSP).

Up 75.55 points, the Philippine Stock Exchange index closed at 7,130.74.

Outside the country, investors are assessing the impact of the Omicron variant on their open positions.

Note that the new Covid strain has now been detected in at least 15 US states. US equities closed Friday in the red.

The slower-than-expected job additions were another contributing factor to the broad market selling last week.

On the data front, Wall St. will continue to keep an eye on the release of MBA mortgage applications (8 December), initial jobless claims (9 December), and CPI (10 December).

The local index moved 3.07 percent lower last week, from 7,281 down to 7,055 as holiday optimism wanes over uncertainties.

Omicron raises concerns about the efficacy of existing vaccines and the likelihood of a new wave of infection.

Global markets dropped last week as worries about the new Omicron variant fueled selling action. Locally, foreign investors continued to be risk averse having a net selling of P1.8 billion.

All sectors ended in red with index heavyweights having the largest declines with reopening plays pressured by the new Covid-19 variant.

Uncertainties prevail
Asian markets broadly fell, tracking uncertainty over Omicron as well as disappointing US jobs data and the future of Chinese tech firms on Wall Street.

The Omicron variant has been detected in 38 countries but no deaths have yet been reported, with authorities worldwide racing to determine how contagious it is and how effective existing vaccines are at fighting it.

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