Manila, Philippines – The Philippine Stock Exchange Index corrected sharply today. The index closed at 7725.85 points, lower by 91.46 points or 1.17 percent. The broader all-share index is down by 0.53 percent.
Most sub-indices are down for the day except for the Property sub-index.
The worst performing sub-index is the Financial, which fell by 2.01 percent. This is followed by the Holdings sector down 1.45 percent.
Within the Financial sector, BDO led the sub-index lower as it closed at 129.50, which was lower by 4.07 percent versus yesterday’s close. BPI closed at 97.00 lower by 1.52 percent.
Meanwhile, SECB closed at 201.20, lower by 1.85. MBT closed at 76.95, lower by 0.65 percent.
Within the Holding sector, SM led the sub-index lower as it closed at 958.50, which was lower by 2.09 percent versus yesterday’s close. JGS closed at 56.00 lower by 3.45 percent.
Furthermore, AEV closed at 58.95, lower by 1.91. MPI closed at 5.01, lower by 2.15 percent.
The most active stocks today include ALI with PHP 1.17 billion in traded value. BDO also made it to the top gainers with a traded value of PHP 237.66 million. SMPH had PHP 180 million in traded value.
Significant gainers for the day include MB, which was higher by 15.29 percent and WPI by 9.92 percent. Joining them are OPM, by 8.33 percent; WIN, by 7.94 percent; PRIM, by 7.75 percent; HVN, by 7.22 percent; ATN, by 6.77 percent; TECH, by 6.10 percent; and, BKR, by 5.98 percent.
Notable losers include MHC, which was down by 11.69 percent and IRC, which was down by 5.95 percent. The following stocks followed suit: BDO, by 4.07 percent; IS, by 3.79 percent; JFC, by 3.57 percent; and, JGS, by 3.57 percent.
There were 99 advances and 103 declines, while 38 names remain unchanged. Value turnover totaled PHP 4.97 billion. Foreign exchange rate stood at USD 1: PHP 52.85.
The Philippine Statistics Authority (PSA) released the inflation figures earlier today.
Inflation for July stood at 5.7 percent, a fresh new 9-year high since March 2009. This figure is above the market median estimates of 5.5 percent.
Moreover, the new record is higher than the June inflation figure of 5.20 percent.
PSA attributed the increase mainly from food and non-alcoholic beverages, which has an average of 7.1 percent annual rate to date.
Alcoholic beverages and tobacco rose by 21.5 percent. Utilities such as gas, housing, electricity, and water rose by 5.60 percent.
Additionally, transportation increased by 7.9 percent, and health rose by 3.7 percent.
Despite efforts to import rise to stabilize prices, rice prices still rose by 5 percent, which is 0.3 percent higher than June. On the other hand, Meat rose by 5.8 percent, fish by 11.4 percent, and vegetables by 16 percent. Sugar and other confectionaries increased by 7.4 percent.
The government was aiming to keep inflation within the range of 2-4 percent from 2018 until 2022.
However, due to the recent inflation figures, the government will most likely miss its target, and the new projection for 2018 will be that inflation will be somewhere between 4-5 percent.
Bangko Sentral ng Pilipinas will have its monetary board meeting tomorrow, August 9, 2018. We will find out if the bank will implement additional rate hikes to combat inflation.
The PSE index corrected sharply after inflation figures were released earlier in the morning. The 15 EMA and 20 SMA, however, may still act as support for the index.
MACD is bullish, though it is pointing for a possible bearish crossover. RSI is currently recovering from overbought levels. Support is estimated at 7635 followed by 7560. Resistance is expected at 7824 followed by 7946.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P51,994,912.00 as of August 07, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP276,641,857.00.
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