South East Asian markets: Philippines outperforms on optimism about tax reform

Philippine shares rose on Wednesday, led by industrial and real estate stocks, as investors were confident that a tax reform bill critical to President Rodrigo Duterte's economic programme would soon get Senate approval. The lower house of Congress passed the much-anticipated tax reform bill last week, aimed at generating revenue to fund a multi-billion dollar infrastructure programme key to the government's economic agenda.
The bill should widen the tax base and boost revenue, Fitch Ratings said in a statement on Wednesday. Among the key stocks that gained, SM Investment Corp rose as much as 3.7 percent to a record high, while Ayala Land climbed 3.1 percent to close at its highest in nearly 10 months. Foreign investors have been net buyers of equities for nearly a month and a half and that has also been pushing the market higher, Felix added.
Other Southeast Asian markets were mixed, with investors cautious ahead of key political and economic events including UK elections and the European Central Bank's policy meeting. Indonesian shares pared early gains to close 0.2 percent higher, with Bank Central Asia gaining 1.4 percent and Bank Rakyat Indonesia rising 1.7 percent. Vietnam shares extended gains into a third session, posting their highest close in more than nine years, with financials leading the rise. Both Singapore and Thailand fell nearly 0.2 percent due to last-minute selling, while Malaysia closed 0.3 percent lower, snapping three sessions of gains.