Manila, Philippines – The Philippine Stock Market closed lower today. The leading index closed at 7635.27, lower by 169.71 points or 2.17 percent.
The broader all-share index is down 1.74 percent. All gains from the past two weeks had been wiped out in one day.
The drop was across the board as all sub-indices were down for the day. The worst performing sub-index is the Property sector — falling by 2.88 percent. The Holdings sector was also drastically low by 2.82 percent.
Within the Holdings sector, SM led the sub-index lower as it closed at 933.00, which was lower by 2.41 percent versus last week’s close.
Furthermore, JGS closed at 54.50, lower by 6.84 percent. AC closed at 953.50, lower by 3.20 percent. GTCAP closed at 950.00, lower by 3.06 percent.
Within the Property sector, SMPH led the sub-index lower as it closed at 37.20, which was lower by 3.38 percent versus yesterday’s close.
In addition, ALI closed at 41.25 lower by 3.17 percent. RLC closed at 20.95, lower by 2.10 percent. MEG closed at 4.90, lower by 1.61 percent.
The most active stocks today include AC with PHP 447.93 million in traded value. ALI also made it to the top gainers with a traded value of PHP 426.28 million. SMPH also had PHP 325.94 million in traded value.
The significant gainers for the day include BHI, which was higher by 11.11 percent; DFNN, by 10.97 percent; RCI, by 7.75 percent; and, ABA, by 6.12 percent.
On the other hand, the notable losers include IMI, which was down by 8.11 percent; MHC, by 7.25 percent; JGS, by 6.84 percent; CHP, by 6.44 percent; MRC, by 5.97 percent; and, SSI by 4.73 percent.
There were 58 advances and 140 declines, while 39 names remain unchanged. Value turnover totaled PHP 5.85 billion. Foreign exchange rate stood at USD 1: PHP 53.135.
The International Monetary Fund (IMF) said that the economic growth remains respectable despite the slower than expected GDP growth released last week. GDP grew by 6 percent for the second quarter, much lower than the recorded 6.6 percent in the first quarter of the year.
In July, the IMF projected the Philippine GDP to be expanding by 6.7 percent. This matches the recorded growth in 2017. However, it is lower than the government’s forecast of 7-8 percent.
The IMF has cited rising inflation and changing external environment as crucial sources of risks for the country.
Yongzheng Yang, IMF’s country representative, said that significant structural reforms to increase productivity is needed to accelerate growth. Infrastructure spending and investments in health and education are equally vital.
Furthermore, IMF reiterated that they support the relaxing of foreign restrictions on specific industries in the tax reform packages.
The replacement of import quotas for rice with regular tariffs will also help lower rice prices by about PHP 7 per kilogram.
Nonetheless, the organization warned the Philippine government in maintaining the fiscal deficit at only 2.4 percent of GDP this year. It will aid in containing inflationary pressures which hurt the economy in recent months.
IMF also welcomed the 50 basis-point rate hike Bangko Sentral ng Pilipinas (BSP) announced last week. It is the third consecutive rate hike for the year to help in combating inflation.
Moreover, IMF sees inflation averaging to 4.7 percent this year — lower than the 4.9 percent full-year forecast BSP announced last week.
The index corrected sharply today and hit immediate support. Price fell below the 15 EMA but found support at the 20 SMA.
Nevertheless, the 15 EMA poised for a bearish crossover with the 20 SMA. MACD is also poised for a bearish crossover.
RSI is turning bearish but is currently at neutral levels. Support is estimated at 7635 followed by 7482. Resistance is expected at 7824 followed by 7946.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P830,210,661.02 as of August 13, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP2,977,389,631.97.
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