PH stocks reaches new high

According to reports, the Philippine stock exchange index reached the 8,900 line, further exceeding expectations.

There was a 4.27% jump from the 2017 finish which was 8,558.42.

According to Timson Securities, Inc. Equities trader Jervin S. de Celis, the jump is mainly attributed to the news that the Department of Finance (Dof) plans to submit three more tax reform packages to Congress this 2018.

“That is what’s keeping the PSEi going up since our corporate income tax is the highest among Southeast Asian nations. Most of our neighbouring countries implement corporate tax rates between 12.5% and 25%,” said Celis.

According to him as well, foreign investment is continually entering the Philippine economy, allowing net foreign inflows to balloon to P1.42 billion from P1.202 billion. As well as the property sector gaining the most increase of 2.4%, followed by financials at 2.24%.

Investors are also starting to bank on companies’ year-end financial reports, along with the benefits of the tax reform program.

Summit Securities, Inc. President Harry G. Liu said that all these things are fuelling the Philippines’ macroeconomy, making it even more appealing to future investors.

“So looking at it, I think in the long term this trend would be very much upward-looking,” Mr. Liu said.

“In the short term, maybe we can meet a bit of resistance for profit-taking. But nevertheless, my long term picture should be about 10,000 for the year.”

He added that it is possible that the PSEi could break the 9,000 line this week, while some analysts say that is can happen later in the year.

“This week, the PSEi breaking the 9,000 is highly like since we are just a few points away from it and this is due to optimism on economic reforms of the current administration as well as the expected higher government spending on infrastructure projects,” he said.

Finishing, he said that the trend is picking up and it is looking good for the Philippines.

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Source: BusinessWorld