New fiscal incentives program perks up equities

The local bourse climbed above the 6,100 level on Wednesday as investors continued to cheer progress of a new law granting tax incentives for corporations.

By the end of the session, the benchmark Philippine Stock Exchange Index (PSEi) added 0.41 percent, or 24.92 points, to 6,119.88.

The broader All Shares Index, meanwhile, lost 0.11 percent, or 3.94 points, to close at 3,675.

A total of 1.41 billion shares worth P5.18 billion changed hands, stock exchange data showed. Foreigners continued to be net sellers, with foreign outflows totaling P515.39 million.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the positive sentiment was due to the signing of the implementing rules and regulations of the Create MORE Act, especially since the law was expected to make the country’s tax incentives “more competitive and investment-friendly.”

Mining and oil companies led the gainers as Philex Mining Corp. again surged by 16.82 percent to P5.07 each on expectations that its Silangan copper-gold project would begin commercial operations by next year, said Peter Garnace, equity research analyst at Unicapital Securities Inc.

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Meanwhile, banks saw the steepest decline, weighed down by Metropolitan Bank and Trust Co. (down 3.31 percent to P71.55), Bank of the Philippine Islands (down 1.09 percent to P127.60) and BDO Unibank Inc. (down 0.77 percent to P141.90).

International Container Terminal Services Inc. was the top traded stock as it shed 0.86 percent to P347 each.

Other actively traded stocks were Ayala Land Inc., up 5.31 percent to P24.80; SM Prime Holdings Inc., up 1.31 percent to P23.15; Universal Robina Corp., up 7.12 percent to P71.50.