THE Philippine Stock Exchange Index (PSEi) continued its downward movement for a third consecutive day from the approval by the Senate of its version of the tax reform package, as well as the MSCI rebalancing and the new missile test by North Korea.

The benchmark index closed at 8,254.03, down 37.85 points or 0.45%, and the all-shares index closed at 4,846.63, down by 8.04 points or 0.16%.

“The expected window dressing did not happen. Spillover effect from TRAIN (Tax Reform for Acceleration and Inclusion) which will affect power, consumer, mining sectors. Local investors locked in their profits as index begin showing signs of bearishness,” Marita A. Limlingan, president at Regina Capital Development Corp., said in a text message.

The Senate on Wednesday night approved its version of the government’s tax reform package, with amendments proposing to increase taxes on coal and mining.

The Senate approved the amendment raising the coal tax from P10 per metric ton to P300 per metric ton, and increasing excise taxes on metallic and non-metallic mining resources from 2% to 4%.

Jervin S. de Celis, equities trader at Timson Securities, Inc., said the index ended bearish due to the missile test by North Korea, as well as the rebalancing of the MSCI

“The index ended bearish today due to North Korea’s missile test and the MSCI index rebalancing that overshadowed the passage of the Senate’s version for the TRAIN bill last night.,” Mr. De Celis said in a text message on Wednesday.

“Foreign investors dumped more than P550 million worth of shares of the top index losers today and P300 million of which was from Ayala Land [Inc.] alone. Meralco’s (Manila Electric Co.) inclusion to the MSCI’s global standard index resulted to foreigners buying P2.18 billion worth of shares of the energy firm,” he added.

Meanwhile, North Korea yesterday launched an intercontinental ballistic missile which it said can reach the entire mainland United States.

Among the sectoral counters, financials, services, and mining and oil gained. Financials closed at 2,100.91, up by 10.34 points or 0.49%; services at 1,610.40, up by 5.08 points or 0.31%; and mining and oil at 11,553.67, rising 27.08 points or 0.23%.

Meanwhile, industrials led decliners as it dropped 104.91 points or 0.96% to end at 10,740.34. Property gave up 36.49 points or 0.94% to close at 3,867.92 and holding firms lost 41.55 points or 0.49% to 8,402.14.

Value turnover ballooned to P18.72 billion from Tuesday’s P8.82 billion, with 1.29 billion shares changing hands.

Decliners outnumbered advancers, 104 to 85, while 51 names remained unchanged.

Foreigners turned buyers, yielding a net inflow of P1.22 billion, a reversal of the previous sessions net sales worth P51.77 million. — PPCM