Profit taking extends share slide to 4th day
MANILA, Philippines — Share prices declined for the fourth trading day in a row due to profit taking, analysts said.
The benchmark Philippine Stock Exchange index plunged 110.01 points, or 1.33 percent, to finish below 8,200 at 8,144.02. Similarly, the broader All Shares gauge ended in negative territory, down 60.77 points or 1.25 percent to end at 4,785.86.
Yesterday’s close was the lowest level in two months but traders said the market was simply experiencing massive profit taking after recent highs the past several weeks.
The mining and oil index was the biggest loser, shedding 1.40 percent as market investors continue to digest the impact of the move to increase coal tax by as much as 300 percent.
The Senate voted to increase excise tax on coal to as much as P300 per metric ton in 2020 from P10 per metric ton. The proposed increase will be gradual or to P100 in 2018, P200 in 2019 and finally to P300 in 2020. This is significantly higher than the P10 per metric ton rate since the 70s.
Miko Sayo of AP Securities said there was massive profit taking which is why the market closed at its lowest level in two months.
He said market investors are still digesting the impact of the Duterte administration’s tax reform program and are closely watching its progress in Congress.
Asian shares and the dollar rose modestly early yesterday in the wake of Wall Street’s advances, but those gains were pared as investors awaited the US Senate’s vote on tax reform legislation.