Philippine stocks close above 8,400 in new milestone
MANILA, Philippines – Philippine stocks continued their rally, breaching the 8,400 mark on Thursday, October 12, as investors took their cue from sentiments overseas.
At the close of Thursday's trading, the Philippine Stock Exchange index (PSEi) surged by 0.53% to 8,402.81 points. Meanwhile, the broader All Shares index rose by 20.40 points or 0.42% to 4,928.28 at the closing bell.
This is the PSEi's 4th milestone in 31 trading days.
On the same day, Bloomberg reported that Asian equities advanced after US stocks hit record highs.
Bloomberg also reported that minutes from the US Federal Open Market Committee (FOMC) meeting in September show that a December interest rate hike is likely.
"Philippine markets resumed the upward trajectory as the minutes from the FOMC meeting cofirmed what was on many analysts' minds," Marita Limlingan, president of Regina Capital Development Corporation, said in a note. (READ: New milestone as Philippine stocks breach 8,300 mark)
"The minutes from the September FOMC meeting discussed near-term effects from hurricanes Harvey, Irma, and Maria; but suggested broadly unchanged views on the underlying pace of growth and inflation," she added.
On the local front, the Philippine market is zeroing in on the developments in the proposed Tax Reform for Acceleration and Inclusion (TRAIN) bill.
President Rodrigo Duterte's economic managers said they are trying to convince the Senate to make its version of tax reform "closer" to that of the House of Representatives, to get enough financial muscle needed to implement the country's ambitious infrastructure program.
Socioeconomic Planning Secretary Ernesto Pernia had said he is optimistic that implementation of the tax reform package can begin by January 2018. (READ: EXPLAINER: Senate, House versions of the tax reform bill)
Foreign buying persisted, with P4.668 billion of shares purchased during Thursday's session. Foreign funds, meanwhile, sold P4.420 billion for a net buying position of P247.238 million. – Rappler.com