Index breaches 8,500 level anew

MANILA, Philippines — The benchmark Philippine Stock Exchange index (PSEi) broke past the 8,500 level again, closing at an all time high of 8,535.09, up 44.18 points, or 0.52 percent, while the broader All  Shares index gained 22.19 points or, 0.44 percent, to settle at 4,963.70.

Traders said investors cheered the passage of the TRAIN or the Tax Reform for Acceleration and Inclusion which would help the government achieve its massive infrastructure program.

TRAIN would increase taxes on fuel, vehicles and sugar-sweetened beverages and expand the value-added tax (VAT) base.

With TRAIN already in place, traders said this is a positive signal to the market that the economy could sustain its growth next year and this could spill over to the corporate sector.

Raul Ruiz, head of Research of RCBC Securities, said the PSEi may even break past the 8,600 level today, the last trading day of the year.

“The market strong performance could spill over to the corporate sector. We are also looking at earnings growth of 10 percent next year,” Ruiz said.

Volume was thin at P6.40 billion. Gainers outnumbered losers 107 to 105, while 38 issues were left unchanged.

Asian shares marched toward a decade high on Thursday, on track for their best annual performance since 2009 as investors bet on a bright outlook for the global economy with copper at a four-year peak.

MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.8 percent to stay within sight of November’s high of 570.2 points, a level unseen since late 2007.