Manila, Philippines – The Philippine Stock Exchange Index fell sharply today. The index closed at 7286.34, which is lower by 0.41 points or 0.01 percent.
The broader all-share index is lower by 0.12 percent.
The drop was across the board, with all sub-indices closing lower than yesterday. The worst performing sector is the Financial sector — falling by 2.80 percent. It is then followed by the Mining and Oil, falling by 2.10 percent.
Within the Financial sector, BPI led the sub-index drop as it closed at 82.10. This figure is lower by 4.14 percent versus yesterday’s close.
Moreover, BDO closed at 112.00, a decline of 2.61 percent. MBT closed at 66.00, which is lower by 4.21 percent. SECB closed at 175.00, falling by 0.57 percent.
Within the Mining and Oil sector, SCC led the sub-index lower as it closed at 27.90. This figure is lower by 2.45 percent versus yesterday’s close.
Furthermore, NIKL closed at 4.49, which is lower by 2.39 percent. PX closed at 3.76, a fall of 2.34 percent. PXP closed at 15.68, a 1.51 percent decline.
Gainers and Losers for the Day
The most active stocks today include ALI with PHP 478.90 million in traded value. SM made it to the top gainers with a traded value of PHP 400.57 million. BPI also had PHP 395.03 million in traded value.
Significant gainers for the day include OV, which is higher by 9.09 percent; RCI, by 7.50 percent; CEI, by 5.96 percent; and, DMC, by 3.77 percent. VUL and PRMX joined the A-list with an increase of 3.07 percent and 2.99 percent, respectively.
Meanwhile, the notable losers include TBGI, which was down by 10.71 percent; PPG, by 9.73 percent; TUGS, by 9.09 percent; and, FOOD, by 7.75 percent. ORE joined the day’s losers with a 7.25 percent fall; PA by 7.14 percent; and, DD, by 6.84 percent.
There were 50 advances and 155 declines, while 35 names remain unchanged. Value turnover totaled PHP 6.15 billion. Foreign exchange rate stood at USD 1: PHP 54.11.
BSP Sets Hints on Strong Monetary Response
Bangko Sentral ng Pilipinas (BSP) is signalling a robust monetary response to curb inflation when it conducts its Monetary meeting next week on Sept 27, 2018.
BSP Governor Nestor Espenilla, Jr. stated its Monetary Board would hold an off-cycle policy review ahead of its scheduled Sept 27 meeting.
The governor committed to undertake strong immediate action as inflation figures reached 6.4 percent in August 2018, a nine-year high. The average 8-month inflation rate is now at 4.8 percent, which is beyond the target of only 2-4 percent.
Some analysts are betting that the BSP will most likely raise rates by another 50 basis points or 0.50 percent.
Espenilla added that the inflation the country experiences currently is driven by supply factors such as scarcity of cheap rice and elevated oil prices.
The country was also hit by typhoon Ompong last weekend. It may have caused more significant damage to crops ready for harvest in a few weeks.
However, the central bank believes that it is still too early to tell if this would have a notable impact on current supply.
The bank has already raised rates for a cumulative total of 100 basis points year to date.
Index Breaks Support
The index broke out estimated support. The 15 EMA has continued moving downwards below the 50 SMA.
The 20 SMA is poised for a bearish crossover with the 50 SMA. MACD is also bearish.
RSI is also bearish and is approaching oversold levels. Estimated support is at 7242 while expected resistance is at 7360.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P294,334,546.69 as of September 18, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP13,392,027,420.56.
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