Manila, Philippines – The Philippine Stock Exchange Index was rather flat today. The index closed at 7817.31 points, lower by 2.08 points or 0.03 percent. The broader all share index is down by 0.17 percent.
Sub-indices are mixed today. The Financial, Industrial, Property, and Mining and Oil sectors were higher for the day.
Meanwhile, the Holdings and Service sub-indices were down.
The best performing sub-index is the Property sector, which was higher by 0.88 percent. The worst performing sector is the Holdings sector, which was down by 0.77 percent.
Within the Property sector, ALI moved as it closed at 41.95, which was higher by 3.58 percent versus yesterday’s close. HOUSE is also higher by 3.63 percent, at 7.70.
Furthermore, FLI closed at 1.46, higher by 0.69 percent. PRMX is also higher by 2.81 percent, to close at 3.66.
Within the Holding sector, AC led the sub-index lower as it closed at 1000, which was lower by 1.96 percent versus yesterday’s close. SM closed at 979 lower by 0.71 percent.
On the other hand, AEV closed at 60.10, lower by 2.36. GTCAP closed at 978.50, lower by 1.95 percent.
The most active stocks today include TBGI with PHP 562.65 million in traded value. ALI also made it to the top gainers with a traded value of PHP 392.30 million. ATN had PHP 331.33 million in traded value.
Significant gainers for the day include ATNB, which was higher by 12.50 percent. This was followed by ATN, by 9.92 percent; TBGI, by 11.11 percent; IRC, by 9.80 percent; MHC, by 8.45 percent; PHA, by 6.73 percent; PXP, by 6.46 percent; and, MRP, by 6.38 percent.
Meanwhile, the notable losers include OV, which was down by 8.33 percent. This was followed by SEVN, by 7.49 percent; SEVN, by 3.31 percent; MAH, by 6.96 percent; FOOD, by 6.33 percent; ISM, by 6.21 percent; H2O, by 5.82 percent; and, VUL, by 7.24 percent.
There were 92 advances and 117 declines, while 36 names remain unchanged. Value turnover totaled PHP 5.29 billion. Foreign exchange rate stood at USD 1: PHP 53.15.
New Rate Hike to Curb Inflation
Economists expect a new rate hike this week in a bid to curb inflation which reached beyond the expected bands.
Most forecast higher inflation for July to as low as 5.10 percent and as high as 5.8 percent. Some analysts are expecting up to a 50-basis point (0.50 percent) rate hike this upcoming monetary policy meeting.
Fourteen economists were asked regarding their estimated inflation rate. They came up with a median yield of 5.50 percent, which is higher than that of June’s actual yield of 5.20 percent and July 2017’s 2.40 percent.
Some of the contributors to inflation are the typhoons and monsoons that hit the country last month. The P1 provisional increase in jeepney fares that took effect in early July may have added pressures as well.
The Philippine Statistics Authority will announce the inflation figures on Tuesday. Initial information is showing that July figures could be around 5.3 percent. This figure is still higher than the 9-year high inflation figure last June of 5.20 percent.
In addition, there was a broad-based increase in commodity prices driven by food and fuel costs. The peso was also weaker last month at around P53, which brought added pressure to rising prices of imported goods.
Economists: BSP Needs to be More Aggressive
Most economists agree that the BSP should step in and do a more aggressive rate hike should inflation figures continue to expand. Out of the 14 economists, 6 believes that a 50 basis-point increase will be announced while the remaining 8 expects a 25 basis-point increase.
Currently, the benchmark rates are at 3-4 percent. The last time that the BSP had a 50-basis point rate hike was in July 2008. It happened during the financial crisis when it saw inflation figures rising to a 17-year high versus the target of 3-5 percent.
The index is still hesitating at the resistance level. The candle formed today is a doji, a possible reversal candle.
The short and medium-term moving averages are bullishly aligned. The 200 SMA, however, may act as resistance.
Nevertheless, MACD is bullish. RSI is moving sideways and is moving sideways. 7635 is the estimated Support while 7820 is the expected resistance, followed by 7950.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P86,964,022.20 as of August 06, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP2,638,882,874.59.
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