Shares continue climb as investors hunt for leads

STOCKS ROSE on Monday, extending last week’s gains, as investors opted to stay on the sidelines pending the much awaited tax reform package approval and as market participants continue to factor in likely positive thirdquarter earnings.

The bellwether Philippine Stock Exchange index rose 0.68% or 56.5 points to 8,367.38.

The all-shares index climbed 0.41% or 20.48 points to 4,909.92.

“Investors are still on the sidelines as they wait on the passing of the final version of the TRAIN ( Tax Reform for Acceleration and Inclusion Act),” said Ramon Emmanuel B. Badiola, equity analyst/trader at Meridian Securities, Inc., in a mobile message.

The Senate will discuss on Wednesday the tax reform plan, which is crucial to President Rodrigo R. Duterte’s ambitious plans to foster higher, sustainable growth.

The tax measures, approved by the lower house of Congress in May, seek to expand the valueadded tax base, raise excise taxes on fuel and automobiles, and slap levies on sugar-sweetened beverages among other changes.

“Risks however, remain present as market- moving news on developing countries can make the market volatile in the long run. It’s good to take note also the effects of the depreciating peso and the rapid growth of inflation,” Mr. Badiola added, while noting that the main index can still be pushed to reach the 8,600 level by yearend.

Meanwhile, Frank Gerard A. Barboza, equity trader at AP Securities, Inc., said the market rode on the momentum of last week’s run.

He added that some investors will already be buying ahead of the curve in anticipation of positive earnings performance.

“Should the bullish tone sustain, we could see a better reception of the coming 3Q2017 earnings season,” Mr. Barboza said in a mobile message yesterday.

Counters finished mixed on Monday. Holding firms surged 1.26% or 107.22 points to 8,562.67; property jumped 0.58% or 22.45 points to 3,878.84; mining and oil climbed 0.26% or 36.61 points to 14,019.14; and financials inched up 0.18% or 3.64 points to 2,001.82.

On the other hand, services declined 0.24% or 4.2 points to 1,744.71, while industrials fell 0.10% or 11.58 points to 11,101.60.

Losers trumped advancers at 104 to 82 as 59 issues remained unchanged.

Value turnover went down to P6.1 billion from the P7.37 billion recorded last Friday as 1.68 billion shares changed hands.

Foreigners opened the week dumping shares as selling netted P248.98 million, significantly higher than Friday’s net outflows worth P11.56 million.

Meanwhile, broader Asian equities edged higher as the flow of economic news remained generally supportive for global growth with shares in China touching a 21-month peak.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.10%, having rebounded by 1.70% last week.

Among other Southeast Asian markets, Thailand was headed for its third straight session of gains. •