Manila, Philippines – The Philippine Stock Market closed lower today for the second straight day. The leading index closed at 7527.78, lower by 107.49 points or 1.41 percent.
The broader all-share index is down 1.41 percent. The drop was across the board as all sub-indices were down for the day.
The worst performing sub-index is the Property sector, which fell by 1.92 percent. The Mining and Oil sector was also sharply lower by 1.79 percent.
Within the Property sector, SMPH led the sub-index lower as it closed at 36.35, which was lower by 2.28 percent versus yesterday’s close. ALI closed at 40.45 lower by 1.94 percent.
Furthermore, RLC closed at 20.50, lower by 2.15 percent. MEG closed at 4.85, lower by 1.02 percent.
Within the Mining and Oil sector, SCC led the sub-index lower as it closed at 31.30, which was lower by 1.88 percent versus yesterday’s close. PXP closed at 14.80 lower by 5.13 percent.
Meanwhile, LC closed at 0.123, lower by 3.15 percent. APX closed at 1.55, lower by 4.32 percent.
The most active stocks today include ALI with PHP 406.4 million in traded value. SMPH also made it to the top gainers with a traded value of PHP 276.80 million. AC had PHP 237.18 million in traded value.
Significant gainers for the day include FOOD, which was higher by 40.00 percent; ABA, by 13.46 percent; OPM, by 8.33 percent; and, PRIM, by 6.15 percent.
On the other hand, the notable losers include RCI, which was down by 6.83 percent; PXP, by 5.13 percent; BRN, by 4.76 percent; and, APX, by 4.32 percent.
There were 60 advances and 141 declines, while 41 names remain unchanged. Value turnover totaled PHP 4.37 billion. Foreign exchange rate stood at USD 1: PHP 53.37.
BSP: The Philippines is Resilient to Global Shocks
The Bangko Sentral ng Pilipinas affirmed today that the country is well-armed with buffers and is resilient to global shocks. The institution announced the report after fears of the current Turkish economic problems ensued.
Investors expressed their worries that Turkey’s dilemma might spill over to emerging countries in Asia. Lira has been on a free fall since May this year.
Last Monday, Reuters reported that the Turkish currency plunged to a new low as the country’s economy remained weak. The trade row with the United States intensified the woes.
Apparently, European banks are the center of the risk with exposure to the Turkish foreign currency debt. However, the situation could still affect emerging markets as an asset class.
Nevertheless, BSP Governor Nestor Espenilla said that the Philippine economy remains resilient for several reasons. One of which is that our fundamentals are sound.
The country is growing, the fiscal position is in order, indebtedness is low, and the external position is moderate.
The central bank also noted that it sits on a “pretty high” level of dollar reserves. Gross international reserves amounted to USD 76.892 billion in July.
The figure is a six-year low but is enough to cover up to 7.4 months worth of import payments.
In a separate comment, ING Bank acknowledged and welcomed the 50-basis point rate hike BSP prepared last week. It is expected to moderate contagion effects on the peso.
The index broke another support line today. The 15 EMA is poised for a bearish crossover with the 20 SMA.
Moreover, the 50 SMA is assumed next support. MACD already made a bearish crossover.
RSI is also bearish but is not yet at oversold levels. 7482 is the estimated Support, while 7635 is the expected Resistance.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P1,472,077,562.13 as of August 14, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP4,024,611,650.67.
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