Manila, Philippines – The Philippine Stock Exchange Index closed slightly lower today. The index closed at 7,050.82, which is lower by 27.38 points or 0.39 percent.
The broader all-share index is lower by 0.36 percent.
Sub-indices were mixed with the Service and Mining and Oil sectors closing high. Meanwhile, the Financials, Industrials, Holdings, and Property dropped low.
The worst performing sub-index is the Industrials sector, falling by 0.70 percent. The best performing sector is the Mining and Oil sector, rising by 1.21 percent.
Within the Industrials sector, MER led the sub-index lower as it closed at 341.60. This figure is lower by 4.04 percent versus yesterday’s close.
Furthermore, JFC closed at 243.0, which is lower by 1.62 percent. AP closed at 33.0, dropping by 1.79 percent. SHLPH ended the day at 52.95 , a 1.30 percent decline.
Within the Property sector, SCC led the sub-index higher as it closed at 25.50, which was higher by 1.59 percent versus yesterday’s close.
Additionally, NIKL closed at 4.33, which is higher by 2.36 percent. PXP ended the day at 15.88, an increase of 0.89 percent. APX closed at 1.46, shooting up by 0.69 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include ALI with PHP 384.57 million in traded value. SM made it to the top gainers with a traded value of PHP 302.74 million. SMPH also had PHP 278.62 million in traded value.
Significant gainers for the day include MWIDE, which is higher by 4.14 percent and MPI by 3.99.
On the other hand, the sole notable loser for the day was WIN with a 5.10 percent drop.
Liquidity is quite low, especially on low-cap stocks for the past few days.
Market Breadth
There were 71 advances and 115 declines, while 56 names remain unchanged. Value turnover totaled PHP 3.97 billion. Foreign exchange rate stood at USD 1: PHP 54.23.
Inflation in Watch List
Last week, inflation figures were released with prices of goods rising by 6.7 percent in September. This figure is a new 9-year high but was slightly lower than expectations at 7 percent. Some economists said that inflation has already peaked and that the coming Christmas season remittances would somehow lower prospective inflation figures.
Nonetheless, financial markets are somewhat staying on the sidelines. They are on a watch and see strategy as markets remain flat for the past two trading days.
The dollar seems to be moving sideways. As of writing, it trades at USD 1: PHP 54.2.
Emilio Neri, the chief economist from the Bank of the Philippine Islands (BPI), estimates that inflation could still pick up. His reference is the price of oil in the world market which is still on an uptrend trajectory.
Landbank’s CFA and Market Economist Guian Angelo Dumalagan expects inflation to drop after Typhoon Ompong’s upward boost in September.
The government also made some policies to curb inflation. They include the removal of tariffs on agri-produce and importation of rice to increase supply in the market.
Bangko Sentral ng Pilipinas is also expected to hike rates by another 25 basis points during its November 15 or December 15 policy meeting.
Index Drops Some More
The market is still falling and is set to retrace 100 percent of its up-move in July. The moving averages are still bearishly aligned with the 15 EMA and 20 SMA as immediate resistance.
Moreover, MACD is bearish. RSI is also bearish and is near 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 P527,896,922.36 as of October 08, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP14,242,930,210.31.
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