Manila, Philippines – The Philippine Stock Exchange Index recovered what it lost on Monday after a strong rally today. The index closed at 7,632.26 — higher by 131.73 points or 1.76 percent.
The broader all-share index is up by 1.17 percent.
Across the Board Rally
All of the sub-indices were up for the day. The best performing sub-index is the industrial sector which rose by 2.63 percent. It is followed by the Property sector rising by 1.88 percent.
Within the Holdings sector, SM led the sub-index lower as it closed at 936.50. This figure is higher by 4.40 percent versus yesterday’s close.
Meanwhile, AC closed at 975.00 higher by 4.11 percent. DMC closed at 11.60, higher by 1.02 percent. JGS closed at 52.0, higher by 2.35 percent.
Within the Property sector, SMPH led the sub-index higher as it closed at 37.10. This figure is higher by 3.56 percent versus yesterday’s close.
Joining SMPH is ALI, which closed at 43.10 higher by 3.16 percent. RLC closed at 20.50, higher by 2.99 percent. MEG closed at 4.89, higher by 1.61 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include ALI with PHP 650.6 million in traded value. JFC also made it to the top gainers with a traded value of PHP 486.50 million. MBT had PHP 378.08 million in traded value.
Significant gainers for the day include UPMC, which was higher by 20.69 percent; POPI, by 7.97 percent; MG, by 7.14 percent; DMC, by 5.65 percent; WPI, by 5.26 percent; and, PHES, by 5.15 percent.
On the other hand, the notable losers include BCOR, which was down by 21.90 percent; FOOD, by 15.57 percent; VITA, by 7.49 percent; and, APC, by 6.56 percent.
They were also joined by ALHI, which was down by 5.44 percent; TECH by, 5.00 percent; and, IRC, by 5.00 percent.
There were 103 advances and 103 declines, while 36 names remain unchanged. Value turnover totaled PHP 5.62 billion. Foreign exchange rate stood at USD 1: PHP 53.38.
Not Yet Done?
The next Bangko Sentral ng Pilipinas (BSP) meeting is set for September. Another round of rate hike is expected.
Inflation is seen to continue to rise and may actually reach 6 percent in the next two inflation reporting periods.
Based on year to date, the BSP already adopted three rate hikes. The last one was the largest since 2009 at 50 basis points.
A total of 100 basis points or 1.00 percent were in effect this year to somewhat combat above expected inflation.
To note, the country registered an inflation rate of 5.2 percent in June, a multi-year high and in July at 5.70 percent, another multi-year high.
BPS Governor Nestor Espenilla Jr. said that the central bank is expecting higher August inflation but not beyond 6 percent.
Mr. Jose Mario Cuyegkang, a senior economist from ING Bank N.V., anticipates another 25 basis point rate hike in the September BSP meeting or even as late as November.
Cuyegkang elaborated that high inflation would continue as rice prices go up. Issues on constraints also surface, affecting inflation.
On average, the increase is at 4.5 percent for the first seven months of the year. This figure is way above the government target of only 2-4 percent.
Recovering Lost Ground
The index rallied sharply today and took back whatever ground it lost on Monday.
The 50% Fibonacci retracement line is still acting as resistance. The 15 EMA is acting as stiff resistance while the 50 SMA as support.
Moreover, MACD is bearish but is starting to reverse and turn bullish. RSI is also turning bullish but is still at neutral levels.
Meanwhile, support is estimated at 7484. Resistance is expected at 7635 followed by 7824.
Foreign Fund Flow
PSEi registered a Net Foreign Buying worth P62,132,460.92 as of August 22, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP5,108,868,324.66.
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