INVESTORS went on a buying binge Wednesday, positive that existing geopolitical jitters would not affect the Philippine market, and lifted the benchmark PSEi back to the 8,000 level.
Despite the perceived risks in key event in major economies, investors resumed to take long positions, Regina Capital Corp. Managing Director Luis Limlingan said.
“It is perceived that the Philippines is in a less risky situation than other markets,” he said.
The UK general elections is happening on Thursday and former Federal Bureau of Investigation (FBI) Director James Comey is giving a testimony before the US Senate on the alleged collusion between Russia and the Trump campaign that supposedly interfered with the US elections.
The bellwether PSEi was up 0.62 percent or 49.20 points at 8,002.32, the highest year-to-date. The broader All Shares gained 0.42 percent or 19.96 points to close at 4,760.27.
The market is waiting for good news from developments in Marawi City, the capital of Lanao del Sur, after two weeks of fight between government troops and Islamist terrorists, said Harry Liu, president of Summit Securities Inc.
Plus, the market is still high from the tax reform package that was approved by the House of Representatives last week.
The comprehensive tax reform program triggered confidence back in the market, noted Astro del Castillo, managing director at First Grade Inc. “The market could have gone higher if not for the US [market closing down],” Castillo said.
The Tax Reform for Acceleration and Inclusion (Train) bill is expected to generate potential revenue of P1.16 trillion in the five years to 2022, if passed into law in its present form, according to estimates by the Department of Finance.
Credit Suisse said the Philippine will most likely get a credit rating upgrade from Fitch Ratings once the tax reform bill makes it through the Senate largely unchanged.
Among the actively traded issues, SM Investments Corp. posted the highest gain of 3.72 percent to close at P809.50 per share, DMCI Holdings was up 3.55 percent at P14.50 and Ayala Land Inc. rose by 3.07 percent to P41.95.