Negative, but still good
The benchmark Philippine Stock Exchange Index (PSEi) ended last week on negative territory following two consecutive weekly advances. Its upward trend, however, remained consistent as average daily total value turnover was above normal at P10.6 billion on a total volume turnover of 58.05-billion shares.
The market’s average daily trading transaction for the year is, so far, equivalent to P7.2 billion on a total volume turnover of 65.92 billion shares.
The market, as a result, settled last Friday at 7,578.16 and ended with a weekly loss of 51.48 points or 0.67 percent.
Foreign investors’ trading transactions appeared to have triggered the downtrend—notable because they have been selling the entire week. Records showed, however, that foreign investors’ total transactions for the week was only at P30.22 billion, equal to only 28.5 percent of total market transactions.
This meant that even local punters were selling more than buying last week. As in the case of foreign investors, their transactions were mainly motivated by profit-taking.
Because of these developments, the PSEi, as of last week, was up by 737.52 points or 10.78 percent year-to-date. The All Shares index was likewise up by 410.16 points or 9.05 percent.
Most importantly, the market continued to trade on stocks more than speculative issues, as evidenced by the market’s higher total value turnover on a relatively smaller number of volume of shares traded.
Some news
The country will host the first of two gatherings of 10 leaders for the 30th Asean Summit. It will be held at the Philippine International Convention Center in Pasay from April 26 to 29.
Malacañang issued Memorandum Circular No. 18 last Friday, declaring that work will be suspended on April 27 for government offices in Manila, Makati and Pasay only. Classes and work for government and private offices in the whole of Metro Manila will be suspended on April 28.
In another development, employees who are receiving a monthly income of P21,000 may soon be exempted from paying the personal income tax.
The government’s proposed comprehensive tax reform plan (CTRP) had been incorporated for formal legislation under House Bill 4774 as filed by Rep. Dakila Carlo Cua.
The tax system will effectively increase the take-home pay of most individuals. The tax plan is expected to decrease the taxes of 99 percent of taxpayers over the next few years.
Incorporated also in the proposed tax legislation, however, are set of measures to compensate for the revenue losses arising from the reduced tax rates. These are measures to address the much-needed funds to fuel the government’s development programs.
Bottom line spin
The market may continue to move sideways toward the low end this week on account of some breaking news here and abroad. Such concerns could trigger more sell-offs and cause further market weakness.
Looking at some of this week’s developments, however, there is a good chance the market’s overall uptrend will still hold.
