Manila, Philippines – The Philippine Stock Exchange made a stronger rally today. The index closed at 7701.38, higher by 35.53 points or 0.46 percent.
Most of the sub-indices are up for the day except for the Mining & Oil sub-index. The best performing sub-index is the Property sector, which rose by 0.87 percent, followed by the Financial industry with 0.41 percent.
Within the Property sector, SMPH was at 38.05, 1.47 percent higher than yesterday’s figure. ALI closed at 41.35, up by 1.22 percent.
DD also gained momentum as it closed at 26.30, a 0.57 percent increase. BEL closed at 3.22, rising by 0.63 percent.
Within the Financial sector, BPI was higher by 1.51 percent, closing at 101. SECB closed at 206, up 0.98 percent.
Moreover, CHIB closed at 33.20, higher by 0.45 percent. RCB closed at 30.00, rising by 1.69 percent.
The most active stocks today include ALI, with PHP 430.44 million in traded value. AC made it to the top gainers as well with a traded value of PHP 407.53 million. MBT also had PHP 338.41 million in traded value.
Significant gainers for the day include MAH, which was higher by 17.50 percent; OPM, by 8.33 percent; ATN, by 7.50 percent; TBGI, by 5.56 percent; and, MJC, by 5.38 percent.
Notable losers include CHP, which was down by 5.38 percent; FOOD, by 5.06 percent; MRP, by 4.15 percent; and, MEG, by 3.29 percent.
There were 86 advances and 89 declines, while 50 names remain unchanged. Value turnover totaled to PHP 5.06 billion. Foreign exchange rate stood at USD 1: PHP 53.435.
The Bangko Sentral ng Pilipinas (BSP) announced today that it would not introduce further tax cuts in required bank reserves this year. The institution already made two cuts in the reserve requirements ratio (RR) earlier this year.
This move is considered inflationary. With the current inflation figures above estimates, the Central Bank may take a more conservative approach.
Furthermore, universal and commercial banks have been required to keep 18 percent of deposits as reserves, lower than the previous 20 percent requirement.
Some economists argue that the cut in RR was contrarian to the rate hike made by the BSP of 25 basis points in March and June.
The initiative to cut RR may be entertained again in 2019 as inflation eases and would stay within forecast.
Average yields on term deposits offered by the central bank are now close to 4 percent, the top end of the 3-4 percent benchmark interest rates.
The PSEi continued its ascend today as it continued to climb for the past four days. The 15 EMA already made a bullish crossover with the 50 SMA.
Moreover, the 20 SMA is poised to do the same. MACD is bullish. RSI is also bullish and is approaching overbought levels. Support is estimated at 7635 while resistance is expected at 7824.
Foreign Fund Flow
PSEi registered a Net Foreign Buying worth P370,737,752.39 as of July 27, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP10,418,087,811.97.
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