Manila, Philippines – The Philippine Stock Exchange tested the support at 7400 level today, and it broke. The index closed at 7365.69, down by 85.68 points or 1.15 percent. The broader all-share index was down by 0.90 percent.
Almost all of the sub-indices were down except for the Service index.
The worst performing sub-index is the Holdings sector, which was down by 1.50 percent. It was followed by the Mining and Oil sector, down by 0.76 percent.
Within the Holdings sector, AC was lower by 2.96 percent, at 950. SM closed at 900, down 1.10 percent. GTCAP was also lower by 4.13 percent, to close at 929. MPI closed at 4.44, down 3.48 percent.
Within the Mining and Oil sector, NIKL closed at 4.33, lower 2.91 percent. Meanwhile, PXP is down 2.86 percent, closed at 10.20.
SCC closed lower at 31.50, lower by 0.47 percent and PX declined by 0.23 percent, to close at 4.34.
The most active stocks today include AC with PHP 271.8 million in traded value. MWIDE also made it to the top gainers with a traded value of PHP 263.6 million. MBT joined the two with PHP 258.62 million in traded value.
Significant gainers for the day include ECP, which was higher by 18.61 percent. It was followed by ABS by 6.74 percent, MRP by 6.59 percent, BSC by 6.00 percent, TBGI by 5.88 percent, and HOUSE by 5.05 percent.
Notable losers include VUL down by 7.33 percent and SSI by 6.06 percent.
There were 72 advances and 117 declines, while 46 names remain unchanged. Value turnover totaled PHP 3.48 billion. Foreign exchange rate stood at USD 1: PHP 53.49.
Fitch Ratings, a reputable credit rating agency, maintained and affirmed its credit rating for the Philippines. It gave the country a “BBB” rating with a “stable” outlook.
This rating, given in December and reaffirmed today, is a notch higher than the minimum investment grade. It also matches the rating given by other credit agencies such as Moody’s and S&P Global ratings.
Fitch sees the country’s Gross Domestic Product (GDP) grow at around 6.8 percent this year. It is higher than last year’s 6.7 percent.
Nevertheless, the figure is still lower than the government’s target of 7-8 percent. The agency also sees this pace to be sustainable until 2020 as the country continues to have a robust domestic demand.
With a good investment grade rating, the country can borrow funds from abroad with a much lower borrowing cost than those below the expected rate.
The agency, however, warns of a possible overheating of the economy as last month’s inflation data was high at 5.2 percent. It was beyond estimates of both the government and of BSP.
Fitch sees inflation for the year to average at 4.4 percent, which is still below BSP’s 4.5 percent full-year target.
After the rally yesterday, the 50 SMA rejected the rally and pushed the index lower. The 15 EMA may still act as support.
MACD is still trending bullishly. RSI is bullish but at neutral levels. Support is estimated at 7365 while immediate resistance is expected at 7482.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P580,187,325.26 as of July 19, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP16,576,905,343.94.
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