Budget Secretary Ben Diokno said the record close of the Philippine Stock Exchange index on the last trading day of the year on Friday is "phenomenal", showing the country "is on the right path to progress."

"I expect that the PSEi bull run will be sustained in 2018 with the prospect of a significant cut in corporate income tax rates , sharp reduction in the cost of doing business, owing to the Build, Build, Build program and higher consumer demand as a result of deep cut in personal income tax rates," said Diokno in a text message to the Daily Manila Shimbun late Friday.

Diokno was referring to the first package of the tax reform package which President Rodrigo Duterte signed into law on December 19.

Finance Secretary Carlos Dominguez III earlier said with Duterte's veto on certain provisions of the tax reform package, the government could generate additional P8 billion revenue from the expected net amount of P82.3 billion.

On Friday, the PSE index (PSEi) closed at a record high on the last trading day of the year. The index rose by 23.33 points or 0.3 percent to 8,558.42. This was the 14 th time the main index closed at an all-time high this year. For 2017, the PSEi gained 25.1 percent.

Five of the six sectoral indices also posted year-to-date gains.

The financials sector was up the most as it rose by 34.7 percent for the year. The mining and oil sector on the other hand was the lone decliner as it lost 3 percent in 2017. DMS