Manila, Philippines – The Philippine Stock Exchange Index resumed its decline today. The index closed at 7518.01, which is lower by 7814 points or 1.03 percent.
The broader all-share index is lower by 0.94 percent.
The decline was across the board as all of the sub-indices were down for the day.
The worst performing sub-index is the Mining and Oil sector with a 2.20 percent decrease. It is followed by the Holdings sector which fell by 1.81 percent.
Within the Mining and Oil sector, NIKL led the sub-index lower as it closed at 4.48. This figure is a decline of 7.82 percent versus yesterday’s close.
Meanwhile, SCC closed at 29.10, which is lower by 1.36 percent. PXP closed at 13.68 — down by 3.12 percent. APX closed at 1.50 — a fall of 1.32 percent.
Within the Holdings sector, JGS led the sub-index lower as it closed at 54.60, which was lower by 4.80 percent versus yesterday’s close.
Furthermore, AC closed at 895.50, which is lower by 2.02 percent. AEV closed at 51.00, a fall of 2.86percent. MPI closed at 5.15 — decreasing by 3.74 percent.
Gainers and Losers for the Day
The most active stocks today include BPI with PHP 311.72 million in traded value. ALI made it to the top gainers with a traded value of PHP 295.93 million. PNX also had PHP 280.05 million in traded value.
Significant gainers for the day include FOOD, which is higher by 7.62 percent; PRMX, by 5.28 percent; LIHC, by 4.84 percent; and, BKR, by 3.70 percent.
On the other hand, the notable losers include TUGS which was down by 15.64 percent; MAH, by 14.87 percent; ECP, by 9.57 percent; and, NOW, by 9.23 percent.
Joining the fall were NIKL with 7.82 percent, BCOR with 6.85 percent, and TBGI with 6.67 percent.
There were 58 advances and 150 declines, while 42 names remain unchanged. Value turnover totaled PHP 5.13 billion. Foreign exchange rate stood at USD 1: PHP 53.88.
TRABAHO Bill Now a Go
The Congress unanimously approved the TRABAHO Bill yesterday with a vote of 187 in favor of the said reform. It was during the third and final reading of the five planned tax reform tranches.
The said reform will gradually decrease corporate taxes from 30 percent to 20 percent. 14 representatives voted against the bill, while three withdrew from voting.
The Tax Reform for Attracting Better and High-quality Opportunities (TRABAHO) bill is a move that will level the current tax rates at par with the country’s Southeast Asian neighbors. Our current tax rates are higher compared to Vietnam, Thailand, and Cambodia at 20 percent and Singapore at 17 percent.
Under the House Bill No. 8083, investment promotion agencies will implement uniform incentive schemes, removal of redundant perks, and capping income tax holidays to 5-7 years.
This move is seen to relieve the country from billions of foregone revenues annually.
FDI’s for the First Half Surge
Foreign Direct Investments (FDI) to the Philippines surged for the first half of the year. Net inflows for FDI totaled to USD 831 million. This figure is 9.2 percent higher than the recorded USD 761 million in June 2017.
It brings the total for the first half to USD 5.755 billion, which is 42.4 percent higher than the recorded USD 4.041 billion received in the first half of 2017. It also brings the full-year target in sight at USD 9.2 billion compared to the recorded USD 10.049 billion in 2017.
PCOMP is nearing the support line of our range and in fact, briefly touched this level. Price is now below the 50 SMA which may act as resistance.
Moreover, the 15 EMA and 20 SMA are on a downward trend. MACD is bearish. RSI is also bearish and is nearing oversold levels. Estimated support is at 7482 while expected resistance is at 7635.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P577,030,408.17 as of September 11, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP9,890,508,173.81.
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