Manila, Philippines – The Philippine Stock Exchange Index rallied further today. The index closed at 7881.82, which is higher by 49.60 points or 0.63 percent.
The broader all-share index was higher by 0.50 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 1.08 percent. The Industrial sector followed with an increase of 0.91 percent.
Within the Mining and Oil sector, SCC led the sub-index higher as it closed at 30.50, which was higher by 3.21 percent versus yesterday’s close.
Furthermore, LCB was higher at 4.88. AT closed flat at 3.43. PX closed flat as well at 4.10.
Within the Industrial sector, JFC led the sub-index higher as it closed at 286.60, which was higher by 1.63 percent versus yesterday’s close.
Moreover, URC closed at 1.40, which was higher by 1.15 percent. MER closed at 372.0, higher by 1.36 percent. AP closed at 36.90, lower by 0.54 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include BDO with PHP 691.92 million in traded value. ALI also made it to the top gainers with a traded value of PHP 385.64 million. ICT also had PHP 273.87 million in traded value.
Significant gainers for the day include IDC, which is higher by 15.99 percent; ABA, by 14.10 percent; T, by 9.17 percent; and, PPG, by 8.56 percent.
Joining the gainers today are ORE, by 6.50 percent; WIN, by 6.15 percent; VUL, by 5.91 percent; IRC, by 5.52 percent; and, CEB, by 5.34 percent.
On the other hand, the notable losers include MRC, which was down by 4.35 percent; H2O, by 4.34 percent; and, PHA, by 3.75 percent.
Market Breadth
There were 101 advances and 87 declines, while 52 names remain unchanged. Value turnover totaled PHP 5.73 billion. Foreign exchange rate stood at USD 1: PHP 53.46.
GDP Growth Expectations Toned Down
According to Secretary of Finance Carlos Dominguez, the country would most likely fall short of its full-year target regarding economic growth. This occurrence is mainly because of higher than expected inflation.
It would be the likely outcome, despite the increase in infrastructure spending.
The Philippines’ GDP went slowly at 6 percent in the second quarter versus the recorded 6.6 percent for the first quarter of the year. It brought the first half average at only 6.3 percent — short of the government’s target of 7-8 percent.
Secretary Dominguez added that the most favorable outcome for the year would be roughly at 6.8 percent.
Fitch, an international rating agency expects Philippine GDP to reach 6.8 percent this year until 2019.
Ernesto M. Pernia, Socioeconomic Planning Secretary, expressed that the country must grow by at least 7.7 percent to hit the bottom target of 7 percent. The figure must be met from July to December 2018.
Inflation for July stood at 5.7 percent and brought the first seven months of the year average to 4.5 percent. This figure is beyond the Central Bank’s target of around 2-4 percent for the entire year.
Some economists expects that GDP growth for August would hit around 6 percent.
Nonetheless, Dominguez tempered worries that the country might overheat because of the high inflation.
Fitch also expressed concerns about high inflation, rapid credit growth, and a widening current account deficit as possible signs of overheating. Still, the agency gave the country its one-notch-above investment grade rating with a “stable” outlook.
Bangko Sentral ng Pilipinas (BSP) has so far increased interest rates by 100 basis points year to date to at least, minimize or slow down inflation. Another rate hike is expected should inflation remains beyond expectations in the following months.
New Higher High
The index marked a new higher high based on closing price with a time frame extending from June 2018. The 15 EMA and 20 SMA are still expected as support.
Furthermore, MACD is bullish. RSI is also bullish but is not yet at overbought levels. Estimated support is at 7824 followed by 7635 expected resistance is at 7946.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P257,560,928.75 as of September 04, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP3,570,451,439.81.
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