Manila, Philippines – The Philippine Stock Exchange has resumed its uptrend and is now breaking short-term resistance. The market closed at 7838.22, up 166.22 points or 2.17 percent.
All of the sub-indices are up for the day. The best performing sub-index is the Mining sector, which was up by 4.99 percent. It is then followed by the Holdings sector, which was higher by 3.14 percent.
Within the Mining and Oil sector, PXP brought the sub-index up as it closed at 14.18, which was higher by 39.02 percent. SCC rose by 1.89 percent, at 32.30.
Moreover, APX closed at 1.57, higher by 11.35 percent. PX is also higher by 2.71 percent, to close at 4.55.
Within the Holdings sector, SM led the sub-index higher as it closed at 990. This figure was higher by 4.21 percent. AEV closed at 59.70 higher by 4.10 percent.
Additionally, AC closed at 1010, higher by 1.60. JGS closed at 57.30, higher by 2.32 percent.
The most active stocks today include ALI with PHP 571.44 million in traded value. SMPH also made it to the top gainers with a traded value of PHP 512.53 million. AC also had PHP 509.74 million in traded value.
Significant gainers for the day include PXP, which was higher by 39.02 percent; APX, by 11.35 percent; AB, by 11.19 percent; SSI, by 9.71 percent; ATNB, by 7.37 percent; BKR, by 6.79 percent; and, ATN, by 6.19 percent.
Notable losers include WIN, which was down by 7.74 percent; VUL, by 5.73 percent; BHI, by 5.17 percent; MAH, by 4.05 percent; and ECP, by 3.68 percent.
There were 120 advances and 74 declines, while 46 names remain unchanged. Value turnover totaled PHP 6.85 billion. Foreign exchange rate stood at USD 1: PHP 53.095.
The Bangko Sentral ng Pilipinas (BSP) sees inflation rate for July still staying above the 5 percent level. Its Economic Research division is looking at a range between 5.1 percent and 5.8 percent.
The range is almost the same or above the recorded 5.2 percent rate in June. It is also beyond the bank’s initial target range of between 2 – 4 percent.
BSP attributed the spike in inflation rates to sustained price increases across all commodities. These include higher electricity rates from Meralco, water rate adjustments from Maynilad and Manila Water, and other hikes and taxes.
Apparently, the tropical storms that hit the country also contributed to losses on agricultural produce. The situation would in turn drive prices of the products higher as supply goes down.
Moving forward, BSP is keen on watching inflation figures and is still committed to ensuring that inflation figures remain within their target range. BSP Governor, Mr. Espenilla assured members of the House of Representatives that the central bank stands ready to take decisive monetary policy responses.
The index appears to have breached out immediate resistance. The 20 SMA is now moving above the 50 SMA, a bullish crossover.
Moreover, MACD is still bullish. RSI is also bullish but is nearing overbought levels. Support is estimated at 7635 while resistance is expected at 7946.
Foreign Fund Flow
PSEi registered a Net Foreign Buying worth P324,406,850.98 as of August 01, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP6,393,789,525.74.
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