Philippine shares closed the week in the red after climbing for five consecutive days, as the long weekend and Washington’s tax cut plans prompted investors to take profit.
The bellwether PSEi dropped 0.85 percent or 65.44 points to close at 7,661.01. The broader All Shares fell by 0.73 percent or 33.60 points to 4,579.20.
“Philippine markets ended the last day of April in the red as US stocks ran out of puff in the shadow of the bell to close narrowly lower and consolidate a stunning two-day rally as a lack of detail in Washington’s proposed tax plan, predominantly related to how it will be funded, tempered near-term optimism,” Regina Capital Corp. Managing Director Luis Limlingan said on Thursday.
“Investors kept to the sideline to digest the information that Treasury Secretary Steven Mnuchin and National Economic Director Gary Cohn unveiled what was called the biggest tax cut “in history” in an effort to simplify the US tax system,” he added.
The Trump administration on Thursday (in Manila) unveiled plans to cut taxes for businesses and individuals, slashing the corporate rate to 15 percent.
“Lastly, Politico reported that the White House is readying an order to withdraw from the North American Free Trade Agreement (NAFTA). According to two White House officials, a draft order has been lodged for the final stages of review and could be unveiled late this week or early next week,” Limlingan noted.
IB Gimenez Securities Inc. head of research Joylin Telagen said the market was in risk-off mode ahead of the long weekend in view of the Association of Southeast Asian Nations Summit.
COL Financial Research Head April Tan said it was due to “profit-taking after several days of rally.”
All sectors were in the red, led by Services (-1.25 percent), Industrial (-1.001 percent), Property (-0.91 percent), Holding firms (-0.67 percent), Financials (-0.47 percent) and Mining and Oil (–0.21 percent).