Manila, Philippines – The Philippine Stock Exchange Index rallied sharply today. The index closed at 7,844.61, which is higher by 78.14 points or 1.01 percent.
The broader all-share index is up by 0.64 percent.
Most of the sub-indices were up for the day except for the Service sector.
The best performing sub-index is the Mining and Oil sector, which is higher by 1.42 percent. It is then followed by the Financial sector, which rose by 0.94 percent.
Within the Financial sector, BDO led the sub-index lower as it closed at 130.80, which was higher by 0.92 percent versus yesterday’s close. MBT closed at 73.85 higher by 1.49 percent.
Furthermore, BPI closed at 93.55, higher by 3.57 percent while SECB closed at 203.40, higher by 1.34 percent.
Within the sector, Mining and Oil, NIKL led the sub-index higher as it closed at 5.30. This figure was higher by 12.77 percent versus yesterday’s close.
Meanwhile, PXP closed at 16.90 higher by 1.56 percent. PX closed at 4.10, lower by 1.23 percent. APX closed at 1.62, higher by 1.25 percent.
Philippine Stock Market: Today’s Summary
The most active stocks today include ALI with PHP 726.28 billion in traded value. ICT made it to the top gainers with a traded value of PHP 611.50 million.
SMPH also had PHP 484.96 million in traded value.
The significant gainers for the day include UPM, which is higher by 24.24 percent; OV, by 18.18 percent; ABA, by 13.24 percent; and, NIKL, by 12.77 percent.
JGS with a 5.65 percent and IRC with a 4.85 percent increase, respectively, joined the gainers for the day.
On the other hand, the notable losers include PHES, which was down by 11.82 percent; TECH, by 8.31 percent; CIC, by 7.14 percent; PAX, by 6.17 percent; BLOOM, by 5.479 percent; and, AEV, by 4.76 percent.
There were 112 advances, and 94 declines, while 38 names remain unchanged. Value turnover totaled PHP 7.03 billion. Foreign exchange rate stood at USD 1: PHP 53.465.
New Baseline to Measure Growth
The Philippine Statistics Authority (PSA) developed a new baseline to measure economic growth but is choosing to defer implementation until 2020.
PSA Chief Lisa Grace S. Bersales reiterated that the agency is looking at 2018 as its new base year for both GDP and inflation. Currently, GDP and other macroeconomic data are pegged versus the prices in the year 2000.
The agency also considered 2015 once as the new base year but was downplayed by the board. The choice of the new base year is estimated to finalize before the year ends.
The officials are also considering using 2012 as its base year for national income accounts. It is to reflect a “more comprehensive” data that will mirror merging developments in the economy.
The discussion started in 2015, but these changes are yet to take effect.
For the Consumer Price Index (CPI), which is a measure of inflation, PSA would introduce new items into the new theoretical basket. This plan is more likely to reflect what a typical household spends and removes things that are not purchased frequently.
The agency fears that using an outdated base could underestimate economic growth as new industries may not be captured. These industries are Business Process Outsourcing (BPOs), Information and Communication Technology (ICT), and eCommerce.
On the other hand, GDP reports were released for the quarter. The second quarter performance was quite lower than expected and may weigh down on the full-year results.
GDP during the first quarter was at 6.3 percent while it was only 6 percent in the second quarter.
The index rallied again today and breached immediate resistance. The short-term and medium term moving averages are bullishly aligned.
MACD is poised for a bullish crossover. RSI is bullish but not overbought. Support is estimated at 7635 while resistance is expected at 7946.
PSEi registered a Net Foreign Buying worth P474,399,096.20 as of August 28, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP4,132,855,942.58.