Manila, Philippines – The Philippine Stock Exchange Index further slipped today below the 7200 level. The index closed at 7,132.36, which is lower by 89.72 points or 1.24 percent.
The broader all-share index is lower by 0.97 percent. The drop was across the board as all sub-indices were down for the day.
The worst performing sub-index is Property sector, falling by 3.66 percent. It is followed by the Mining and Oil, which fell by 2.50 percent.
Within the Property sector, SMPH led the sub-index lower as it closed at 33.85. This figure is lower by 5.05 percent versus yesterday’s close.
Furthermore, ALI closed at 39.30, which is lower by 3.20 percent. MEG closed at 4.16, a 5.02 percent drop. Meanwhile, RLC closed at 20.0, dropping by 1.23 percent.
Within the Mining and Oil sector, SCC led the sub-index lower as it closed at 24.50. This amount is smaller by 5.77 percent versus yesterday’s close.
Moreover, PX closed at 3.28, which is lower by 0.91 percent. AT closed at 3.0, a drop by 0.33 percent. FNI ended with 1.85, closing flat for the day.
Which Stocks Traded Aggressively?
The most active stocks today include SMPH with PHP 663.34 million in traded value. ALI also made it to the top gainers with a traded value of PHP 451.01 million. SM also had PHP 398.61 million in traded value.
Significant gainers for the day include SLF, which rose by 4.68 percent, CNPF by 4.65 percent, and X by 4.05.
On the other hand, the notable losers include CHP, which fell by 8.15 percent, WLCON by 6.19 percent, SCC by 5.77 percent, and SLI by 5.13 percent. Joining the losers were SMPH by 5.05 percent, MEG by 5.02 percent, and MWC by 4.76 percent.
There were 72 advances and 112 declines, while 56 names remain unchanged. Value turnover totaled PHP 5.16 billion. Foreign exchange rate stood at USD 1: PHP 54.11.
Credit Agency Sees Peso Further Depreciating
Firth Solutions, a credit rating agency, sees the peso going down further because of external pressures. However, the robust domestic growth and the hawkish monetary policy may help catch the downtrend.
Nonetheless, other emerging markets are also feeling the blunt as US rates continue to go up and will put weight on the local currency.
The peso trades at new 12-year lows as it moves above the PHP 54 mark in September.
The agency’s full-year forecast for the peso is estimated at PHP 54.80 by year end. This is versus its initial estimates of PHP 54.00. Firth further sees it plummeting to PHP 56.33 in 2019.
The agency’s report said that the financial crisis in Turkey and Argentina, as well as the rising US rates, would result to a risk-off sentiment in emerging markets.
To somehow support the peso and curb inflation, Bangko Sentral ng Pilipinas (BSP) raised rates by 150 basis points cumulatively. Firth expects another 25 basis point increase in the fourth quarter of 2018 and another 75 basis point increase next year.
Another noteworthy fact to consider is the aggressive “Build Build Build” program. It would add pressure to the Peso due to both budget and current account deficit as this would require import of capital goods.
Moreover, Firth Solutions also warned against closer ties with China as the Philippines may get caught in between trade tensions between China and the US.
Market Trading at its Lows
The market fell further today and made a new three-month low. The moving averages are bearishly aligned with the 15 EMA and 20 SMA as immediate resistance.
Furthermore, MACD is bearish. RSI is also bearish and is approaching oversold levels.
Meanwhile, it is almost close to retracing 100 percent of the up-move from July which will erase all gains from the said reference month. Estimated support is at 6993 while expected resistance is at 7191.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P397,379,527.94 as of October 02, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP12,616,380,900.53.
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