Manila, Philippines – The Philippine Stock Exchange Index made new three month-lows today. The index closed at 7,001.14, falling by 58.24 points or 0.83 percent.
The broader all-share index declined by 0.85 percent.
The drop was across the board as all sub-indices closed in the red today.
The worst performing sector is the Financials sector, dropping by 0.99 percent. The Holdings sector followed suit, falling by 0.87 percent.
Within the Financials sector, BDO led the sub-index lower as it closed at 110.0. This figure is lower by 2.65 percent versus yesterday’s close.
Meanwhile, SECB closed at 135.70, dropping by 2.93 percent. BPI locked at 81.90, a decline of 0.24 percent. EW closed at 12.0, which is lower by 2.91 percent.
Within the Holdings sector, JGS led the sub-index lower as it closed at 47.00. The amount is smaller by 3.09 percent versus yesterday’s close.
Furthermore, AC closed at 900.0, which is lower by 1.10 percent. LTG closed at 13.06, a 3.69 percent drop. GTCAP locked at 710.00, a decline of 1.93 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include BDO with PHP 467.44 million in traded value. JFC made it to the top gainers with a traded value of PHP 345.84 million.
AP also had PHP 250.16 million in traded value.
Gainers and Losers for the Day
Significant gainers for the day include RCB, which is higher by 6.95 percent, SSI by 6.44 percent, SEVN by 5.36 percent, MRC by 5.36 percent, and MER by 4.14 percent.
On the other hand, the notable losers include NOW, falling by 31.24 percent, ECP by 11.56 percent, BRN by 7.32 percent, BCOR by 5.96 percent, and HVN by 5.96 percent.
There were 56 advances and 131 declines, while 45 names remain unchanged. Value turnover totaled PHP 5.10 billion. Foreign exchange rate stood at USD 1: PHP 54.24.
Unimpeded Rice Imports Ordered
The Philippine President is firm in pursuing the unrestricted rice importation in a bid to help ease inflation. Current record has reached new 9-year highs.
Rice supply has been short of demand the previous months, resulting in a surge in prices. With this new thrust, it is seen that supply will flood the market at lower prices.
Headline inflation reached 6.7 percent in September, higher than the recorded 6.4 percent in August. This figure is also above the government’s full-year target at 2-4 percent.
Dissecting it further, the price of rice accounted for 9.6 percent of the increase in the entire theoretical basket of basic and widely consumed goods. It is considered a significant contributor to headline inflation.
By flooding the market, the supply of rice can now counter the expected increase in oil prices and other commodities.
The government also revoked the National Food Authority’s power to control and restrict the price of imported rice. Anyone who can afford and is willing to pay tariffs will be allowed to import rice.
The executive is also pushing Congress to approve a new measure that would change the current quota-based rice importation system with a regular tariff system.
In effect, it would lower rice prices by around PHP 7 per kilo.
According to a survey, the average retail price of regular milled rice is at PHP 45.83 per kilo on the last week of September. It is significantly higher than the PHP 38.05 per kilo a year ago.
Well-milled rice stood at PHP 49.37 per kilo versus the recorded PHP 42.27 per kilo a year ago.
Index Making New Lows
The index failed to confirm the bullish reversal today and even made a new 3-month low. The candle is a strong bearish candle.
The moving averages are bearishly aligned with the 15 EMA and 20 SMA as immediate resistance.
MACD is bearish. RSI is also bearish. Estimated support is at 6929 while expected resistance is at 7134.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P507,963,019.30 as of October 10, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP15,474,516,296.20.
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