Manila, Philippines – The Philippine Stock Exchange Index dropped further today. The index closed at 7598.64, which is lower by 40.07 points or 0.52 percent.
The broader all-share index is lower by 0.11 percent.
Most of the sub-indices for the day were lower except for the Industrial sector.
The worst performing sub-index is the Property sector, which was down by 1.52 percent. It is followed by the Holdings sector, with a 0.59 percent drop.
Within the Property sector, ALI led the sub-index lower as it closed at 42.20. This figure is lower by 2.09 percent versus yesterday’s close.
Meanwhile, SMPH closed at 36.65, which is lower by 1.74 percent. RLC closed at 20.75, down by 0.95 percent. MEG closed at 4.40, a drop of 0.68 percent.
Within the Holdings sector, SM led the sub-index lower as it closed at 938.0, which was lower by 2.19 percent versus yesterday’s close.
Furthermore, AC closed at 917.00, which is lower by 2.86 percent. GTCAP closed at 870.50, a drop of 1.53 percent. AGI closed at 13.36, a 0.89 percent fall.
Which Stocks Traded the Largest Volume?
The most active stocks today include AC with PHP 723.26 million in traded value. ALI made it to the top gainers with a traded value of PHP 525.26 million.
MBT also joined the list with PHP 472.70 million in traded value.
Significant gainers for the day include ABG, which is higher by 17.96 percent, PPG with a 14.99 percent increase, PRMX at 9.32 percent, GEO at 7.11 percent, and HOUSE at 5.76 percent.
On the other hand, the notable losers include UBP, which fell by 3.69 percent, RLT at 3.09 percent, and AC at 2.86 percent.
Market Breadth
There were 103 advances and 89 declines, while 46 names remain unchanged. Value turnover totaled PHP 5.86 billion. Foreign exchange rate stood at USD 1: PHP 53.80.
Businesspeople Gloomy on Bad Economic Numbers
Level of Optimism for people in business was lower for the quarter as inflation figures went beyond expectations.
The inflation rate for August reached 6.4 percent. The figure tops the 5.7 percent recorded in July.
On a positive note, they are eager to enter the last quarter in anticipation of the Christmas season, which may result in increased consumer spending.
From the latest Business Expectations Survey made by the Bangko Sentral ng Pilipinas (BSP), 30.1 percent of respondents are positive for the third quarter. However, this is 9.2 percent lower than the 39.30 percent recorded in the preceding quarter.
At the same time, the figure above is 7.8 points lower from the overall confidence index for the third quarter.
The reason cited for the negative outlook is the rising cost of commodities in the global market. The added effect of the Tax Reform for Acceleration and Inclusion (TRAIN) also weighed in on domestic goods.
Other reasons cited include:
- lower crop production from the rainy season
- higher overhead cost for manufacturing
- lower consumer demands as enrollment expenses were prioritized
- tough competition
- a stronger dollar
However, the outlook for the next quarter looks better at 42.60 percent. This figure is higher by 2.20 points from the second quarter’s 40.40 percent. Nevertheless, it is less than the recorded 51.3 percent a year ago.
Results from the survey also showed that firms expect tighter financial conditions, but are confident that they can meet the financing requirements as credit is still readily available.
Trading the Range
The index continued to test medium-term support today and so far, still holding. The 15 EMA and 20 SMA are still expected resistance.
On the other hand, the 50 SMA acted as support. MACD is still turning bearish. RSI is also bearish but is not yet at oversold levels.
In addition, estimated support is at 7527 while expected resistance is at 7888. From the looks of it, the index currently trades inside a range with the above support and resistance lines.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P1,421,053,098.33 as of September 07, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP7,445,496,479.20.
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