Manila, Philippines – The Philippine Stock Exchange index recovered lost ground today. The index ended at 7,004.77, up by 120.39 points or 1.75 percent.
The broader all-share index rose by 1.43 percent.
The rally was across the board as all sub-indices closed in the red today.
The best performing sector is the Mining and Oil sector rising by 2.63 percent followed by the Industrial sector up by 2.23 percent.
Within the Mining and Oil sector, SCC led the sub-index lower as it closed at 26.00, higher by 4.00 percent versus yesterday’s close.
Moreover, PXP closed at 15.20, up by 2.70 percent. APX closed at 1.46, higher by 2.82 percent. NIKL closed at 4.31, increasing by 0.94 percent.
Within the Industrial sector, URC led the sub-index higher as it closed at 137.0, which is higher by 7.03 percent versus yesterday’s close.
Furthermore, JFC closed at 262.0, flying high by 3.15 percent. FB closed at 89.50, higher by 3.47 percent. AP closed at 34.0, increasing by 1.49 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include ALI with PHP 396.81 million in traded value. SMPH also made it to the top gainers with a traded value of PHP 390.23 million. GLO also had PHP 275.80 million in traded value.
Significant gainers for the day include NOW, higher by 28.67 percent, CHP by 10.53 percent, VITA by 8.81 percent, and TBGI by 7.37 percent, STR by 7.36 percent, STI by 7.25 percent, and IDC by 7.18 percent.
The notable losers include GERI falling by 4.00 percent, MWC by 3.82 percent, and PRMX by 3.52.
Market Breadth
There were 127 advances, 56 declines, while 47 names remain unchanged. Value turnover totaled PHP 4.82 billion.
Foreign exchange rate stood at USD 1: PHP 54.18.
More Tightening Needed
THE BANGKO SENTRAL ng Pilipinas (BSP) said it is ready to tighten further monetary policy should there be a need to help curb inflation.
Year to date, the BSP has already cumulatively raised interest rates by 150 basis points, the last of which was in September at 50 basis points.
Inflation has further increased to 6.7 percent in September, another 9-year high after the recorded 6.4 percent in August.
This was mainly driven by food and oil prices which is beyond the BSP’s full-year target of 2.4 percent.
In support of the monetary policies of BSP, the government has allowed unimpeded importation of rice to flood the market with supply in a bid to lower prices.
GDP has also slowed to a three-year low of 6 percent for the second quarter. The next GDP report is expected on November 8.
The BSP expects inflation to have peaked in September and may start to stabilize in the fourth quarter as OFW and BPO remittances start coming in.
Index Closes the Gap
The index closed the gap made yesterday after the index gapped down to make a 52-week low.
The candle today is a bullish cover, a possible strong reversal candle.
It is still too early to tell as no higher highs and higher lows have formed.
The moving averages are still bullishly aligned with the 15 EMA and 20 SMA as immediate resistance.
MACD is still bearish. RSI is also bearish and is near oversold levels. Estimated support is at 6928 while expected resistance is at 7140.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P720,773,087.12 as of October 12, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP16,905,648,629.57.
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