The market bounced back and resumed its rally today. The index closed at 7,927.70, higher by 62.50 points or 0.79 percent. The broader all share index rose by 0.61 percent.
Most of the sub-indices for the day ended higher with the exception of the Financial and Industrial sectors. The worst performing sector is the Industrial sector dropping by 0.37 percent. The best performing sector is the Property sector flying by 3.28 percent.
Within the Property sector, ALI led the sub-index higher as it closed at 45, which was higher by 4.41 percent versus yesterday’s close. SMPH closed at 38.30, higher by 3.51 percent. MEG closed at 5.27, higher by 2.73 percent. RLC closed at 22.90, higher by 1.78 percent.
Within the Industrial sector, URC led the sub-index lower as it closed at 140.00, which was lower by 2.10 percent versus yesterday’s close. MER closed at 378, lower by 2.33 percent. AP closed at 36.05, lower by 0.41 percent. PIZZA closed at 12.00, lower by 3.23 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include ALI with PHP 1.15 billion in traded value. SMPH also made it to the top gainers’ list with a traded value of PHP 1.08 billion. AC also had PHP 552.78 million in traded value.
Gainers and Losers for the Day
Significant gainers include PHA, higher by 11.11 percent, ORE by 6.19 percent, LPZ by 5.19 percent, and MAXS by 5.13 percent.
Significant losers include NOW by 11.67 percent, ABA by 1.45 percent, ALCO by 6.38 percent, ABG by 5.73 percent and MRC by 5.38 percent.
Market Breadth
There were 101 advances, 99 declines, while 51 names remain unchanged. Value turnover totaled PHP 8.32 billion. Foreign exchange rate stood at USD 1:PHP 52.13.
GDP Seen to Slow Down in 2019
The latest estimate of a macroeconomic surveillance agency for South East Asian Nations Plus 3 economies (AMRO) and HSBC Private bank showed that GDP will most likely slow down last 2018 and this year.
AMRO estimate that GDP grew by 6.4 percent last year and will grow 6.3 percent this year in its January update. This is lower than the 6.5 percent and 6.4 percent estimate in its October report. Last 2017, the country grew by 6.7 percent.
On the flip side, inflation figures are seen to be improving. From the initial 4.3 percent estimate, it is now down to 3 percent. This will be lower than the recorded 5.2 percent in 2018. This is above the BSP’s estimate of 2-4 percent. Headline inflation saw its peak in September and October at 6.7 percent. This slowed down to 6 percent in November and finally at 5.1 percent in December.
To curb inflation, the BSP has raised rates by 175 basis points or 1.75 percent from May to November 2018 but kept rates steady on December 2018.
HSBC on the other hand projects GDP at 6 percent from its 6.2 percent estimate in 2018. It also expects that the BSP will raise rates by 25 basis points this quarter. It estimates inflation to be at 3.8 percent for the entire year which will already fall between the BSP’s target of 2-4 percent. It also expects the Philippine Stock Exchange Index to hit 8,600 this year after a bad 2018 performance.
A Rebound
The market appears to have resumed its rally or has at least found immediate short term support. The short term and medium term bias is still bullish. MACD is bullish. RSI is moving sideways. Support is at 7869 while resistance is expected at 8024.
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