Manila, Philippines – The Philippine Stock Exchange Index closed sharply low today. The index closed at 7,078.20, which lower by 15.14 points or 0.21 percent. The broader all share index is lower by 0.16 percent.
Sub-indices were mixed with the Property and Service sectors closing high. Meanwhile, the Financials, Industrials, Holdings, and Mining and Oil closed low.
The worst performing sub-index is the Holdings sector, falling by 0.66 percent. On the other hand, the best performing sector is the Property sector, rising by 0.64 percent.
Within the Holdings sector, JGS led the sub-index lower as it closed at 49.05, which was lower by 3.44 percent versus yesterday’s close.
Furthermore, SM closed at 870.0, a 0.57 percent drop. GTCAP closed at 764.0, declining by 2.49 percent. AEV closed at 47.10, which is lower by 1.26 percent.
Within the Property sector, ALI led the sub-index higher as it closed at 39.00. This figure is higher by 1.04 percent versus yesterday’s close.
Moreover, SMPH closed at 34.30, which is higher by 0.59 percent. MEG closed at 4.15, flying high by 1.22 percent. RLC closed at 19.80, increasing by 0.61 percent.
Gainers and Losers for the Day
The most active stocks today include ALI with PHP 347.11 million in traded value. SMPH made it to the top gainers with a traded value of PHP 242.80 million. SM also had PHP 225.81 million in traded value.
Significant gainers for the day include SSI, which is higher by 6.06 percent, and IRC by 5.06.
On the other hand, the notable losers include ECP, which fell by 8.92 percent, CLC by 8.92 percent, and FOOD by 5.94.
There were 66 advances and 129 declines, while 40 names remain unchanged. Value turnover totaled PHP 3.79 billion. Foreign exchange rate stood at USD 1: PHP 54.32.
Inflation on a new 9-year high
Headline inflation reached 6.7 percent in September, a new 9-year high.
According to the Philippine Statistics Authority, the current inflation is higher than the recorded 6.4 percent in August.
However, it is still lower than the BSP’s estimates at 6.8 percent. Also, it is higher than the 6.4 percent of that of the Department of Finance’s.
Subsequently, the figure is lower than ANZ’s research and Sun Life’s projection at 7 percent. Water, electricity, housing, food, alcoholic beverages, gas, and transport cost were the top contributors of inflation.
Transport cost rose by 8 percent while food and non-alcoholic beverages increased by 9.70 percent. Alcoholic beverages and tobacco rose by 21.8 percent.
Meanwhile, furnishing, household equipment, and routine maintenance of house rose by 3.6 percent. Health increased by 4.1 percent, communications by 0.50 percent, and recreation and culture by 3 percent.
The Philippine Statistics Authority added that Typhoon Ompong contributed to the increase in the prices of goods and services in the Bicol region. The typhoon caused damages amounting to PHP 27 billion worth of corn, rice, livestock, and fisheries.
In response with the inflation, the BSP raised rates for another 50 basis points. This makes the year to date cumulative total to 150 basis points.
Additionally, the Philippine President issued AO 13, removing non-tariff barriers in the importation of agricultural goods.
Index Closes Flat
The market was slightly lower but generally closed flat today. Nonetheless, it closed to a new lower low on a three-month period.
The moving averages are still bearishly aligned with the 15 EMA and 20 SMA as immediate resistance. MACD is bearish.
RSI is also bearish and is nearing oversold levels. Estimated support is at 6993 while expected resistance is at 7134 followed by 7191.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P885,366,442.06 as of October 05, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP14,113,925,910.30.
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