Manila, Philippines – The Philippine Stock Exchange Index saw profit-taking today. The index closed at 7,766.47, which is lower by 37.56 points or 0.48 percent.
The broader all-share index is down by 0.08 percent.
Most of the sub-indices were down for the day except for the Holdings sector.
The worst performing sub-index is the Financial sector, which is lower by 1.42 percent. It is then followed by the Property sector, at 0.94 percent.
Within the Financial sector, BPI led the sub-index lower as it closed at 92.70. This figure is lower by 3.24 percent versus yesterday’s close. MBT closed at 72.50 lower by 1.49 percent.
Furthermore, CHIB closed at 31.05, which is lower by 3.57 percent. SECB closed at 199.30, a 1.34 percent decline.
Within the Property sector, ALI led the sub-index higher as it closed at 3.77. This figure is lower by 0.90 percent versus yesterday’s close. MEG closed at 4.68 lower by 5.26 percent.
Moreover, RLC closed at 20.60, which lower by 1.90 percent. HOUSE closed at 7.30, lower by 5.19 percent.
Most Active Stocks
The most active stocks today include SMC with PHP 849.74 billion in traded value. ICT also made it to the top gainers with a traded value of PHP 632.18 million.
ALI joined the two — closing at PHP 602.54 million in traded value.
Significant gainers for the day include TFHI, which is higher by 13.94 percent; PXP, by 8.05 percent; SMC, by 7.38 percent; and, CYBR, by 6.10 percent.
Joining the gainers’ list are PHES, which is up by 5.77 percent; FB, by 4.23 percent; and, LPZ, by 3.97 percent.
On the other hand, the notable losers include TECH, which is down by 11.76 percent; BCOR, by 11.14 percent; PNX, by 7.72 percent; and, IRC, by 6.78 percent.
Joining the losers’ list for the day include VUL, which is down by 6.38 percent; FOOD, by 5.56 percent; MEG, by 5.26 percent; and, HOUSE, by 5.19 percent.
There were 76 advances and 122 declines, while 54 names remain unchanged. Value turnover totaled PHP 6.97 billion. Foreign exchange rate stood at USD 1: PHP 53.48.
Capital Outflows Expected
Emerging markets, including the Philippines, may expect foreign outflows during a time where yields are rising.
The rising dispute between the United States and China may also weigh down on capital flows as investors avoid instability. This report is from an article published by Moody’s Investor Services yesterday.
The US already hiked interest rates seven times — twice this year. This hike is in line with the rate normalization efforts the US Federal Reserve tries to pursue.
The Fed expects to make another 25 basis point hike next month as they see signs of growth and recovery in job creation.
In the Philippines, the Bangko Sentral ng Pilipinas hiked three times. The cumulative rate hike is 100 basis points or 1.00 percent year to date.
For July, the country saw a net foreign inflow of $53.29 million in anticipation of good earnings report for the second quarter. Those inflows snapped two months of net foreign outflow.
For the seven months ending in July 2018, the country recorded a USD 455.75 million net foreign inflow. This figure was a turnaround from the USD 204.24 million net outflows a year ago.
In addition, the record is better than the USD 900 million net outflows BSP expects by year-end.
The rating agency gave the country a crediting rating of Baa2 – one notch above investment grade with a stable outlook. It expects inflation to average 6.8 percent this year.
Profit-Taking
The index saw a small profit taking today after having a strong rally yesterday. Price is still above the short-term moving averages which are now turning bullish as well.
Furthermore, MACD is poised for a bullish crossover. RSI is also turning bullish but is not yet at overbought levels.
Support is estimated at 7655 while resistance is expected at 7635 followed by 7824.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P398,892,622.35 as of August 24, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP4,645,038,691.98.
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