Manila, Philippines – The Philippine Stock Exchange Index finally rebounded today. The index closed at 7517.37, which is higher by 68.17 points or 0.92 percent.
The broader all-share index is higher by 0.55 percent. The rally was across the board as all sub-indices were up for the day.
The best performing sub-index is the Mining and Oil sector, which is higher by 1.97 percent. It is followed by the Property sector, with an increase of 1.21 percent.
Within the Mining and Oil sector, PXP led the sub-index higher as it closed at 16.16. This figure is higher by 7.59 percent versus yesterday’s close.
Meanwhile, NIKL closed at 4.79, which is higher by 8.13 percent. APX closed at 1.57, an increase of 2.61 percent. CPM closed at 1.96, a 1.55 percent increase.
Within the Property sector, SMPH led the sub-index higher as it closed at 37.50. This figure is higher by 2.74 percent versus yesterday’s close.
Moreover, ALI closed at 42.0, which is higher by 0.60 percent. RLC closed at 20.95, an increase of 2.20 percent. FLI closed at 1.49, which is higher by 2.05 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include BPI with PHP 577.92 million in traded value. URC made it to the top gainers with a traded value of PHP 488.10 million. BDO also had PHP 435.61 million in traded value.
Significant gainers for the day include IDC, which is higher by 11.30 percent; NIKL, by 11.96 percent; PXP, by 7.59 percent; JGS, by 4.94 percent; and, ICT, by 3.83 percent.
On the other hand, the notable losers include GSMI, which went down by 5.84 percent. Joining it are X, with a 5.56 percent drop; TUGS, by 5.50 percent; PRMX, by 4.65 percent; and, PLC, by 4.40 percent.
FOOD by 4.35 percent and VITA by 4.21 percent were also in the losers’ list.
There were 72 advances and 123 declines, while 45 names remain unchanged. Value turnover totaled PHP 5.70 billion. Foreign exchange rate stood at USD 1: PHP 54.13.
TRAIN 2: Senate’s Version
The government stands to lose more revenues in the Senate’s version of the TRAIN 2, which gradually cuts income tax rates. This bill is in comparison with the version approved by the Congress last week.
Department of Finance Undersecretary Karl Kendrick Chua estimates that the Senate’s version would result in a PHP 130 billion loss. The project is during the first year of implementation of the House Bill No. 8083 or the Tax Reform for Attracting Better and Higher-quality Opportunities (TRABAHO).
The lower house version would result in a decline of PHP 62 billion in lost revenues in the first year.
The Senate’s version suggests an unconditional reduction in corporate income taxes (CIT) from the current 30 percent to 25 percent.
The implementation of the incentive rationalization is during the second year. It will scrap redundant incentives and set a stricter eligibility criterion.
The DoF proposed a conditional reduction on incremental revenues from reduced fiscal incentives. However, both houses were not in favor.
Fitch Ratings worries that such impact may affect the PHP 8 trillion for the Build Build Build infrastructure plan until the end of the term of President Duterte.
TRAIN 2 approved by Congress aims to reduce income tax from 30 percent to 20 percent eventually by the year 2029.
The aim is to have it through a 2 percent reduction every year. This will then result in putting the Philippines at par with other Asian countries.
Technical Bounce
The market rebounded today but is still not in the clear. The 15 EMA and 20 SMA are still poised for a bearish crossover.
Furthermore, the 50 SMA is a possible resistance. MACD is bearish. RSI is at oversold levels and is turning.
Estimated support is at 7482 while expected resistance is at 7635.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P398,026,093.18 as of September 13, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP11,942,099,384.56.
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