Manila, Philippines – The Philippine Stock Exchange Index was slightly lower closing at 7804.98, down 15.73 points or 0.20 percent. However, the broader all-share index is up at 0.02 percent.
Most of the sub-indices went down except for the Mining and Oil sector. The worst performing sub-index is the Holdings sector, which was lower by 0.25 percent. The Industrial sector went as runner-up, which closed lower by 0.23 percent.
Within the Holdings sector, AC led the sub-index lower as it closed at 985.00, which was lower by 2.48 percent versus yesterday’s close. LTG closed at 17.28 lower by 2.48 percent.
Moreover, SM closed at 956.00, lower by 0.42 percent. LPZ closed at 4.36, lower by 2.02 percent.
Within the Industrial sector, AP led the sub-index lower as it closed at 36.10, which was lower by 1.90 percent versus yesterday’s close. JFC closed at 267.0 lower by 0.74 percent.
Furthermore, MWC closed at 26.20, lower by 1.87 percent. DNL closed at 10.50, lower by 2.42 percent.
The most active stocks today include AC with PHP 440 million in traded value. ALI also made it to the top gainers with a traded value of PHP 335.44 million. SM also had PHP 256.92 million in traded value.
Significant gainers for the day include DFNN, which was higher by 18.57 percent; ECP, by 15.18 percent; CPG, by 6.74 percent; NOW, by 6.67 percent; ORE, by 6.54 percent; and, SSI, by 5.26 percent.
Meanwhile, the notable losers include ATNB, which was down by 9.03 percent, ATN by 8.44 percent, AB by 6.52 percent, CLC by 2.86 percent, and ICT by 2.99 percent.
There were 96 advances and 86 declines, while 51 names remain unchanged. Value turnover totaled PHP 5.85 billion. Foreign exchange rate stood at USD 1: PHP 53.09.
The Philippine economy grew the slowest for the past three years in the second quarter. This occurrence led some analysts and economists to consider lowering down their full-year forecast.
The economy fell on its status despite the fastest growing market in the entire Asian region tag.
The Gross Domestic Product (GDP) grew by 6 percent for the 2nd quarter of 2018. This figure is lower compared to the revised 6.6 percent growth in the same period last year according to the Philippine Statistics Authority (PSA).
The recorded GDP is also lower than the revised 6.6 percent growth in the first quarter of the year.
For the past three years, the current financial standing is the lowest pace recorded since 2015, which only registered a 5.6 percent growth.
The country’s GDP averaged 6.3 percent for the first half of the year, also below the targeted 7-8 percent for 2018.
On the other hand, Gross National Income grew by 5.8 percent in the second quarter. This figure is lower than the 6.6 percent recorded previously.
The chart below shows that almost all sectors are lower than last year’s records except for the construction sector:
The economy must grow at least 7.7 percent to hit the lower bracket of the full-year target. It is quite high and is unlikely to be met.
At the moment, market players expect a slower full-year expansion after the 2nd quarter GDP figures went out.
Times have changed and turned out to be challenging for the economy amid rising prices.
Bank economists are in doubt of hitting the government’s target of 7-8 percent. They expect full-year GDP to settle below the 6.7 percent growth recorded in 2017.
Economists are also wary of risks to growth such as the continued increase in world crude prices and the on-going US-China trade war. The events could affect Philippine export products.
The index is still moving sideways in consolidation. The short and medium-term moving averages are still bullishly aligned with the 15 EMA as immediate support.
Furthermore, MACD is still bullish. RSI is moving sideways and is near overbought levels. 7820 is the estimate for Support. Resistance is expected at 7946.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P515,885,340.43 as of August 10, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP2,604,932,572.32.
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