Manila, Philippines – The Philippine Stock Exchange index was flat the entire day but was sold off at market run-off.
The index ended at 6926.51, down by 78.26 points or 1.12 percent. The broader all-share index declined by 0.59 percent.
The drop was across the board as all sub-indices closed in the red today.
The worst performing sector is the Industrial sector falling by 1.71 percent followed by the Service sector dropping by 1.09 percent.
Within the Industrial sector, JFC led the sub-index lower as it closed at 250.00, which was lower by 4.58 percent versus yesterday’s close.
Meanwhile, URC closed at 132.30, lower by 3.43 percent. MER closed at 77.00, down by 1.08 percent. AP closed at 4.31, with a 1.18 percent decrease.
Within the Service sector, TEL led the sub-index lower as it closed at 1368.0, which was lower by 2.29 percent versus yesterday’s close.
Furthermore, GLO closed at 2010.0, lower by 4.29 percent. RRHI closed at 89.50, down by 3.75 percent. PGOLD closed at 42.00, falling by 2.33 percent.
The most active stocks today include ALI with PHP 429.93 million in traded value. SECB also made it to the top gainers with a traded value of PHP 260.41 million. BDO also had PHP 246.31 million in traded value.
Gainers and Losers for the Day
Significant gainers for the day include VUL higher by 9.91 percent, STI by 9.46 percent, BCOR by 8.28 percent, WIN by 8.11 percent, and ECP by 6.94 percent.
Notable losers include JCI falling by 4.58 percent, GLO by 4.29 percent, RRHI by 3.75 percent, and RCB by 3.57 percent.
There were 106 advances, 84 declines, while 41 names remain unchanged. Value turnover totaled PHP 4.14 billion. Foreign exchange rate stood at USD 1: PHP 54.13.
Duterte Plans to Suspend Oil Tax
Duterte along with Congress both agreed for the need to suspend the next scheduled oil rate hike on January 2019 to minimize the impact of rising fuel prices abroad.
This is also to aid in stabilizing inflation figures which hit 6.7 percent by September, a 9-year high. Moreover, this is above the full-year target of the government at 2-4 percent. Next year will also mark the mid-term elections in May.
The previous tax on oil brought about by the TRAIN law amounted to PHP 2.50 per liter. Another PHP 2.00 and PHP 1.50 per liter hike is set on 2019 and 2020 respectively which will bring the excise tax to a total of PHP 6.00 per liter.
However, a provision suspending the hike is also in place should the average price on crude oil based on Dubai reach USD 80 per barrel (/bbl) for the last three months.
Average price for the previous 10 trading days (as of October 12, 2018) is at USD 82.278/bbl, 50.69 percent higher than the USD 54.602/bbl recorded in the same period last year.
Finance Assistant Secretary Antonio Joselito Lambino II estimates that the price of crude oil for the next two months will stay above USD 80 per barrel, and thus, they’ve already decided that the threshold would be breached and the suspension mechanism would kick in.
Some oil traders as well as the S&P Global Platts Asia Pacific Petroleum Conference in Singapore expects crude prices to go beyond USD 100/bbl in 2019.
The suspension of the fuel excise tax is seen to lessen the burden of the rising prices of goods and services.
Index Goes Back in the Red
The index marked a piercing black candle today, a bearish formation.
The moving averages are still bearishly aligned with the 15 EMA and 20 SMA as immediate resistance. MACD is bearish. RSI is also bearish.
Based on the chart, the index has marked another lower high. A lower low can be expected in the coming sessions.
US futures as of writing is also pointing to a weaker open. This may again spill over to Asian markets the next day.
Support is estimated at 6849 while resistance is expected at 7140.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P737,996,117.68 as of October 15, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP16,941,186,067.80.
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