The Philippine Stock Exchange Index rallied strongly today, closing at 8064.90, higher by 75.25 points or 0.94 percent. The broader All Share index is higher by 0.98 percent.
Most of the sub-indices were higher for the day with the exception of the Mining and Oil sector which ended lower. The best performing sector is the Financial sector sector rising by 1.36 percent. The worst performing sector is the Mining sector which was lower by 3.41 percent.
Within the Financial sector, BDO led the sub-index higher as it closed at 135.0, which was higher by 1.58 percent versus yesterday’s close. BPI closed at 92.80, higher by 2.09 percent. MBT closed at 84.00, higher by 1.63 percent. SECB closed at 176.0, higher by 0.57 percent.
Within the Mining and Oil sector, SCC led the sub-index lower as it closed at 23.10, which was lower by 5.33 percent versus yesterday’s close. NIKL closed at 2.41, lower by 3.60 percent. PX closed at 3.94, lower by 3.19 percent. FNI closed at 1.46, lower by 2.01 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include PHA with PHP 583.71 million in traded value. BDO also made it to the list with a traded value of PHP 507.71 million. AC also had PHP 361.24 million in traded value.
Gainers and Losers for the Day
Significant gainers include PAL, which closed at 15.98 and higher by 25.27 percent, MAH by 14.29 percent, NRCP by 8.42 percent, and IRC by 8.04 percent.
Significant losers include AT by 7.54 percent, BKR by 5.52 percent, WPI by 5.48 percent, SCC by 5.33 percent, NI by 5.31 percent, FOOD by 4.63 percent, BLFI by 4.44 percent and ABA by 4.35 percent.
Market Breadth
There were 120 advances, 87 declines, while 43 names remain unchanged. Value turnover totaled PHP 6.98 billion. Foreign exchange rate stood at USD 1:PHP 52.75.
Government Retains Growth Target
The government has targeted a growth of 7-8 percent this year, and according to Finance Secretary Carlos Dominguez III, we will most likely hit this target despite a slowdown in the global economy.
Last year, the gross domestic product (GDP) grew by 6.3 percent annually for the first 9 months. The full year and fourth quarter GDP figures are still set to be released today.
Global growth is estimated to slow down to 3.5 percent this year from the 3.7 percent in 2018 as trade tensions between China and the United States escalate and advanced economies suffer from weaker activity.
On the other hand, the Philippines is not heavily reliant on international trade and another positive thing seen is that inflation is starting to slow down. The government is positive that inflation will most likely trade inside its estimated band of 2-4 percent.
The government is also positive that the additional revenues from the newly implemented Tax Reform for Acceleration and Inclusion (TRAIN) program last year will support the faster and bigger government spending.
Infrastructure and election spending may also help drive up the GDP figures for the year.
Market Undecided
It appears that the market has actually made a new 10-month high. The 15 EMA and 20 SMA are still expected support. The 50 SMA already has a more pronounced bullish crossover with the 200 SMA. MACD is also trending bullishly. RSI is moving sideways and is still nearing overbought levels. Support is estimated at 7862 while next resistance level is expected at 8340.
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