By Arra B. Francia, Reporter
SHARES jumped on Monday as investors went on bargain-hunting mode as the year comes to a close.
The all-shares index likewise rose 0.80% or 39.36 points to 4,909.79.
“Most of the blue chips led the rally for today. And may nalalapit na (there could be) window dressing as analysts see the index reaching the 9,000 level for 2018,” A&A Securities, Inc. analyst Jeng T. Calma said in a phone interview on Monday.
“It was back to bargain hunting after the last minute sell-off across-the-board… This was in tandem with US indices closing at records Friday, as investor expectations grew for the passage of the Republican-backed tax-cut legislations,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.
US firms are expected to bring home larger earnings with the tax bill under US President Donald J. Trump due to proposals to reduce federal corporate taxes to 21% from the current 35%.
With investors cheering this development, the Dow Jones Industrial Average picked up 0.58% or 143.08 points to close at 24,651.74 last Friday, while the Nasdaq Composite Index also added 1.17% or 80.06 points to 6,936.58. The S&P 500 index meanwhile jumped 0.90% or 23.80 points to 2,675.81.
All local sectoral indices closed in positive territory, with the mining and oil sector leading the surge at 1.55% or 173.35 points to 11,355.21, along with the property counter that likewise added 1.55% or 59.45 points to end at 3,892.73.
The services sub-index was up 1.25% or 20.07 points to 1,624.10; holding firms saw a 0.91% uptick or 77.47 points to 8,508.79; industrials rose 0.70% or 77.89 points to 11,205.31; while financials added 0.08% or 1.82 points to 2,169.21.
A total of 853.22 million issues changed hands valued at P5.66 billion. This is significantly lower than the P10.73-billion value turnover logged last Friday.
Advancers narrowly beat decliners, 103 to 100, while 46 issues were unchanged.
Net foreign selling continued on Monday at P196.2 million, albeit lower than the P1.1-billion outflow recorded last Friday.
Asked if this trend is expected to continue until the end of the year, A&A’s Ms. Calma said this would depend on how investors view the implementation of the Tax Reform for Acceleration and Inclusion program in 2018.
“We will see kung ganyan pa rin kalakas (if it will remain this strong), given that there are additional taxes next year, they will be increasing documentary stamp. So the implementation of the tax reform program could [potentially make investors shy away] from investing in the market,” Ms. Calma said.