PSEi breaches 6,400 on CMEPA hopes

The implementation of a new law boosting the local capital markets gave the benchmark stocks index a boost beyond 6,400 on Tuesday, brushing off anxiety over geopolitical tensions.

By the end of the session, the Philippine Stock Exchange Index (PSEi) had jumped by 0.93 percent, or 58.91 points, to close at 6,423.85.

Likewise, the broader All Shares Index added 0.47 percent, or 17.69 points, to 3,799.36.

A total of 1.35 billion shares worth P7.69 billion changed hands, stock exchange data showed.

The index’s climb came as Republic Act No. 12214, or the Capital Markets Efficiency Promotion Act (CMEPA), came into effect.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., noted that the reduced stock transaction tax of 0.1 percent from 0.6 percent boosted investor sentiment.

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Both the Securities and Exchange Commission and the Philippine Stock Exchange have expressed optimism that this particular provision under the law would help boost market activity at a volatile time.

Conglomerates saw the steepest climb due to gains at SM Investments Corp. (up 2.52 percent to P894), Ayala Corp. (up 3.51 percent to P590) and GT Capital Holdings Inc. (up 5.84 percent to P607.50).

Ayala Land Inc. was the most actively traded stock as it jumped by 3.33 percent to P27.90, followed by DigiPlus Interactive Corp., down 3.85 percent to P50; Bank of the Philippine Islands, up 0.31 percent to P130.40; Bloomberry Resorts Corp., down 0.59 percent to P5.08; BDO Unibank Inc., down 0.85 percent to P151.50; International Container Terminal Services Inc., up 0.49 percent to P413; and SM Prime Holdings Inc., up 1.92 percent to P23.90 per share.