Shares up as market cheers impact of TRAIN on wages

Philippine shares climbed for the second consecutive trading day on Monday, as the market cheered the impact of tax reform on salaries.

The main PSEi gained 43.10 points or 0.49 percent to 8,857.72 at the closing bell. The broader All Shares climbed 27.84 points or 0.55 percent to 5,126.59.

“Seems to me it’s still positive sentiment on the tax reform, particularly, on higher disposable incomeinduced spending because the top gainer today is consumer name Jollibee,” Jeffrey Lucero, equity research analyst at RCBC Securities Inc., said.

Share prices of Jollibee closed at P263.80 apiece, up P8.80 or 3.45 percent from P255 on Friday.

Monday, January 15, is the first time employees will receive salary under the Tax Reform for Acceleration and Inclusion (TRAIN) regime.

The TRAIN law, or Republic Act No. 10963, reduced the personal income tax of most Filipino workers, while it expanded the value-added tax base.

“More buying power for consumers fueling the sustained rally of consumer names,” Lucero said.

Foreign funds bought P2.572 billion of shares during the session and sold P2.152 billion for a net buying position of P419.911 million

More than 735.922 million shares, valued at P5.577 billion, changed hands. Losers led winners, 109 to 99, and 52 issues were unchanged.

News Online)

(GMA