Manila, Philippines – The Philippine Stock Exchange Index traded weaker the entire day but recovered at market close. The index closed at 7,059.38, rising by 8.56 points or 0.12 percent.
The broader all-share index declined by 0.28 percent.
Sub-indices were mixed with the Industrial and Property sectors closing green. The Financials, Holdings, Services, and Mining and Oil closed in the red.
The worst performing sub-index is the Mining and Oil sector, falling by 0.70 percent. On the other hand, the best performing sector is the Property sector, rising by 1.18 percent.
Within the Mining and Oil sector, SCC led the sub-index lower as it closed at 24.70. This figure is lower by 3.14 percent versus yesterday’s amount.
Moreover, PX closed at 3.24, dropping by 0.61 percent. NIKL closed at 4.31 with a 0.46 percent decline. AT locked at 2.85 lower by 1.04 percent.
Within the Property sector, ALI led the sub-index higher as it closed at 39.70. It is higher by 1.79 percent versus yesterday’s close.
Meanwhile, SMPH closed at 34.40, an increase of 1.18 percent. RLC closed at 20.20, increasing by 1.51 percent. HOUSE locked at 7.25, a significant rise of 0.42 percent.
Gainers and Losers for the Day
The most active stocks today include SECB with PHP 217.44 million in traded value. SMPH made it to the top gainers with a purchased amount of PHP 193.15 million.
URC also had PHP 190.58 million in traded value.
Significant gainers for the day include ISM, which is higher by 8.68, LR by 7346 percent, CLC by 5.9 percent, and TBGI, by 5.88 percent. Joining the gainers are LRW by 5.13 percent, RCB by 4.31 percent, ECP by 4.08 percent, and JFC by 3.87 percent.
On the other hand, the notable losers include BCOR, falling by 8.11 percent, FB by 6.67 percent, WEB by 5.41 percent, GLO by 5.15 percent, and MRC by 5.08 percent.
There were 751 advances and 103 declines, while 53 names remain unchanged. Value turnover totaled PHP 3.81 billion. Foreign exchange rate stood at USD 1: PHP 54.185.
Bid for the Third Telco
The battle for the third telco already started as bidding documents became available yesterday. Four local firms and one foreign company, Norway’s Telenor Group, are up to the challenge.
Other interested parties include:
- Dennis Uy’s Udenna Corp.
- listed firm NOW Corporation
- TierOne Communications International, Inc. owned by Chavit Singson
- another unidentified company
Telenor is looking for a local partner to boost its current bid. Allegedly, the company is in talks with some local partners.
It is just the first day of filing and NTC Commission Gamaliel Cordoba was quite surprised by the turnout. He expects more bids in the coming days.
Other foreign firms that might participate in the bidding are Vietnam’s Viettel Telecom, LG Uplus Corp, South Korea’s KT Corp., and China Telecom.
Bidding documents are available on the NTC’s website and cost PHP 1 million.
PT&T to Bid Next Week
Another listed company, Philippine Telegraph and Telephone Corporation (PT&T) confirms downloading the bid documents. They will make the payment next week.
Transpacific Broadband Group International, Inc. (TBGI) and EasyCall Communications Philippines, Inc. are also keen in participating on the said bidding.
The battle for the third telco is in alignment with President Duterte’s commitment to breaking the duopoly between Globe and PLDT.
The schedule for the bid document review is on November 7, 2018. The highest bidder will be the provisional winner. The company will then be given 90 days to finalize its roll-out and business plans.
Part of the requirements includes a paid-in capital of at least PHP 10 billion. The telco must have an experience as a nationwide telco provider for the last 10 years.
Moreover, the winner must be clear from any liabilities from NTC as of October 1, 2018. Most importantly, the company must not be, in any way, affiliated with Globe or PLDT.
Index Fighting Back
The index registered a dragonfly doji — a possible bullish reversal candle. However, it is still pending confirmation tomorrow.
The moving averages are bearishly aligned with the 15 EMA and 20 SMA as immediate resistance. MACD is bearishly aligned.
RSI is flattening but is near the oversold area. Estimated support is at 6993 while expected resistance is at 7134.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P158,011,716.58 as of October 09, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP14,875,341,023.09.
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