Manila, Philippines – The Philippine Stock Exchange Index closed flat today. The index closed at 7413.56, which is higher by 0.41 points or 0.01 percent.
The broader all-share index is lower by 0.12 percent. Most of the sub-indices were down except for the Industrial and Property sectors which closed higher today.
The best performing sector is the Industrial sector — rising by 1.12 percent. Meanwhile, the worst performing sector is the Mining and Oil, with a 1.65 percent fall.
Within the Industrial sector, URC led the sub-index higher as it closed at 145.30. This figure was higher by 2.83 percent versus last week’s close.
Moreover, JFC closed at 275.00, which is higher by 2.23 percent. AP closed at 37.00 with an increase of 0.68 percent. MWIDE closed at 16.80, an increase of 2.44 percent.
Within the Mining and Oil sector, SCC led the sub-index lower as it closed at 28.60. It was lower by 1.38 percent versus last week’s close.
Furthermore, PX closed at 3.85 with a 3.75 percent decline. PXP closed at 15.92, which is lower by 2.45 percent. NIKL closed at 4.60, a fall by 1.29 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include BDO with PHP 228.68 million in traded value. SMPH made it to the top gainers with a traded value of PHP 202.76 million. AC also had PHP 196.29 million in traded value.
Significant gainers for the day include FOOD, which is higher by 15.18 percent; PA, by 13.51 percent; PPG, by 9.14 percent; OM, by 7.69 percent; IDC, by 5.74 percent; and VUL, by 5.07 percent.
On the other hand, the notable losers include AB, which was down by 8.64 percent; X, by 7.05 percent; and, TFHI, by 6.46 percent.
There were 95 advances and 99 declines, while 44 names remain unchanged. Value turnover totalled to PHP 3.51 billion. Foreign exchange rate stood at USD 1: PHP 5.97.
BSP Sets Foreign Currency Hedging Policy
The Bangko Sentral ng Pilipinas (BSP) re-established a pre-existing facility which allows borrowers to protect their foreign exchange exposure.
Those who have at least USD 50,000 are eligible to avail the Currency Rate Risk Protection Program (CRRP). CRRP will enable borrowers to protect themselves should they suffer from a stronger dollar or a weaker peso.
Year to date, the Peso already depreciated by around 7.54 percent versus the dollar. The Philippine Peso is one of the region’s weakest currencies next to the Indian Rupee and Indonesian Rupiah.
The CRPP facility is a non-deliverable-peso-dollar forward (NDF) between local universal and commercial banks and the BSP.
Under the agreement, the parties would agree that on the maturity of the forward contrac; they will only pay the difference between the spot rate and forward rate. It will also be settled in pesos.
It will cover unhedged loans and payables in foreign currency which includes both short-term and medium-to-long-term loans maturing in 90 days from the application of the CRRP. Hedging contracts last up to 90 days but is once again renewable once expired.
This facility was initially implemented in 1997 to mitigate the impact of the foreign exchange volatility when the Asian Financial Crisis happened. It was again updated in 2005 and the last availment was in 2009.
The peso recently hit new 12-year lows after it breached the USD 1: PHP 54.00 level. As of writing (3:00 PM), the exchange rate stood at PHP53.97.
Still Not Done Yet
The index decline appears to have ceased a bit today. The 15 EMA has just made a bearish crossover with the 50 SMA. The 20 SMA is poised to do the same. MACD is bearish. RSI is also bearish and is nearing oversold levels. Estimated support is at 7360 while expected resistance is at 7482.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P250,880,732.32 as of September 17, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP13,091,047,208.16.
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