Manila, Philippines – The Philippine Stock Exchange made a strong rally today. The index closed at 7665.85, higher by 151.85 points or 2.02 percent.
Most of the sub-indices are up for the day except for the Mining & Oil sub-index.
The best performing sub-index is the Holdings sector — rising by 2.69 percent. It is then followed by the property sector rising by 1.90 percent.
Within the Holdings sector, SM was higher by 3.86 percent, at 969. AEV closed at 54.95, up 5.27 percent. JGS is also higher by 3.68 percent, to close at 54.95. AC closed at 980.00, rising by 1.66 percent.
Within the Property sector, SMPH was higher by 3.31 percent, at 37.50. ALI closed at 40.85, up 0.86 percent. RLC is also higher by 3.37 percent, to close at 19.62. MEG closed at 4.86, rising by 1.25 percent.
The most active stocks today include ALI, with PHP 878.90 million in traded value. SM also made it to the top gainers with a traded value of PHP 555.50 million. BDO also had PHP 443 million in traded value.
Significant gainers for the day include FERRO, which was higher by 14.48 percent; ISM, by 10.11 percent; SSI, by 6.67 percent; AEV, by 5.27 percent; and, LIHC, by 5.17 percent.
Notable losers include PLC, which was down by 6.19 percent; ION, by 4.00 percent; LRW, by 3.70 percent; and, BLOOM, by 2.71 percent.
There were 125 advances and 79 declines, while 42 names remain unchanged. Value turnover totaled PHP 6.20 billion. Foreign exchange rate stood at USD 1: PHP 53.37.
Philippine President Rodrigo Roa Duterte has submitted the proposed 2019 national budget to Congress right after the State of the Nation Address (SONA) last Monday.
The budget amounted to P3.575 trillion and was approved by the Cabinet on July 9, 2018, despite the recent changes in speakership.
The new Speaker of the House is Rep. Gloria Macapagal Arroyo, who is also an economist.
The budget for 2019 is slightly lower versus the 2018 budget of PHP 3.767 trillion obligations-wise since the former provides for disbursements only within the fiscal year.
Additionally, the President reiterated that the focus is on the Build, Build, Build Program and human capital development.
The government is targeting revenues of PHP 3.208 trillion for 2019. This is 12.7 percent higher than the PHP 2.846 trillion revenue in 2018.
The planned disbursements for 2019 total PHP 3.832 trillion, which is higher by 13.7 percent versus the PHP 3.37 trillion in 2018. This would result in a budget deficit amounting to PHP 624.4 billion, 19.23 percent higher than the PHP 523.68 billion deficit ceiling this year.
Furthermore, the President assured that the 2019 budget provides for mitigating measures, which includes an increase in conditional and unconditional cash transfer programs. Moreover, the Pantawid Pasada Program will see an increase in budget from PHP 1 billion to PHP 3.90 billion.
The Development Budget Committee estimated that the inflation for 2018 would be between 4-4.5 percent and would ease to 2-4 percent in 2019. The exchange rate is seen to be between PHP50 – PHP 53 this year.
The index rallied strongly today breaking above our expected resistance. The 15 EMA is poised for a bullish crossover with the 50 SMA.
Meanwhile, the 20 SMA is about to do the same. MACD is bullish. RSI is also bullish but is nearing overbought levels. Support is estimated at 7631 followed by 7482. Resistance is expected at 7824.
Foreign Fund Flow
PSEi registered a Net Foreign Buying worth P644,668,003.27 as of July 26, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP13,013,729,487.87.
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