THE stock market broke past the 8,900 level on Tuesday with investors continuing to show optimism in the economy following the implementation of a tax reform law.
The benchmark Philippine Stock Exchange index (PSEi) jumped 2.04 percent or 178.60 points to close at 8,923.72, the highest since Friday’s 8,770 and the fourth record high since the start of the year.
The broader All Shares, meanwhile, grew by 1.44 percent or 72.86 points to end the day at 5,138.63.
Philstocks Financial, Inc. research head Justino Calaycay Jr. said Tuesday’s gains were still due to new year optimism that was fueled by the Tax Reform for Acceleration and Inclusion (Train) Act.
“We just had a slight pullback yesterday (Monday) as profit-takers stepped into the picture, so I think this is just a continuation [of the optimism.]There’s really nothing right now to justify people from pulling out their investments in the market,” he said.
“So far it has been good. The outlook has remained rosy, there’s a lot of hopes pinned on where the economy is going for the year,” he added.
“If you recall, most of the outlooks for the Philippines have been positive in light of the Train. Even the IMF (International Monetary Fund), the World Bank and other institutions have had a generally positive outlook for the market and the economy, hinged on the Train Act, because the Train is supposedly the one that will provide funding for the [government’s infrastructure projects].”
The Train law, which took effect at the start of 2018, is expected to generate billions in revenues to fund the government’s “Build Build Build” infrastructure program.
A second package is expected to be approved early this year. The Finance department has estimated that both packages will generate a total of P969.2 billion by 2022.
Calaycay also said that the local market had tracked gains in the region and on Wall Street.
All sectoral indices ended Tuesday in the green, led by property that rose by 2.40 percent.
Volume turnover reached 709 million valued at P8.35 billion.
Winners led losers, 118 to 93, while 47 issues were unchanged.
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