The market continued its rally ending the week above 8,000. The index closed at 8047.12, higher by 119.92 points or 1.51 percent. The broader all share index is higher by 1.29 percent.
All of the sub-indices ended higher today. The best performing sector is the Holdings sector rising by 1.94 percent. This is followed by the Industrial sector by 1.68 percent.
Within the Holdings sector, SM led the sub-index higher as it closed at 976, which was higher by 2.41 percent versus yesterday’s close. AEV closed at 67.90, higher by 2.88 percent. AC closed at 939.0, higher by 1.73 percent. JGS closed at 66.25, higher by 1.53 percent.
Within the Industrial sector, JFC led the sub-index higher as it closed at 324.80, which was higher by 3.77 percent versus yesterday’s close. URC closed at 142.90, higher by 2.07 percent. AP closed at 37.95, higher by 5.27 percent. CHP closed at 2.49, higher by 18.01 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include BDO with PHP 937.78 million in traded value. SMPH also made it to the top gainers’ list with a traded value of PHP 547.15 million. ALI also had PHP 518.80 million in traded value.
Gainers and Losers for the Day
Significant gainers include CHP, higher by 18.01 percent, FLI by 7.53 percent, AT by 6.06 percent, ABS by 5.63 percent, AP by 5.27 percent, and HLCM by 4.96 percent.
Significant losers include FERRO by 5.92 percent, MAH by 5.91 percent, BCOR by 4.36 percent, FDC by 4.07 percent, DMC by 3.04 percent and MRC by 3.41 percent.
Market Breadth
There were 111 advances, 76 declines, while 59 names remain unchanged. Value turnover totaled PHP 7.84 billion. Foreign exchange rate stood at USD 1:PHP 52.41.
Cement Imports Slapped with New Import Tax
Cement imports will now be given an additional import tax amounting to PHP 8.40 per bag. This move is a provisional safeguard to avoid further importation. This new tariff is expected to be implemented by February 8, 2019.
Local cement manufacturers have been hurting for years as imported cement was much cheaper than what they produce locally. The government implemented this tax to protect domestic industry from serious injury.
The additional taxes will be used to fund the governments Build Build Build Program. In a study conduct by the Philippine Statistics Authority (PSA), construction materials have risen by around 8.1 percent in November 2018 while cement prices rose by 2.5 percent.
This news resulted to a strong rally in local cement manufacturers CHP which rose by 18.01 percent and HLCM by 4.96 percent.
Rally Continues
The index actually made a new higher high versus what was recorded last Monday. The 15 EMA and 20 SMA are bullishly aligned and are expected as immediate support. The 50 SMA is about to do a bullish crossover with the 200 SMA. MACD is bullish. RSI is also bullish and is nearing overbought levels. Support is estimated at 8024 while resistance is expected at 8093.
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