Manila, Philippines – The Philippine Stock Exchange Index fell sharply further today. The index closed at 7134.73, which is lower by 86.50 points or 1.20 percent.
The broader all-share index is lower by 0.96 percent.
The drop was across the board with all sub-indices closing low. The worst performing sector is the Holdings sector falling by 1.72 percent, followed by the Mining and Oil declining by 1.42 percent.
Within the Holdings sector, SM led the sub-index lower as it closed at 862.0. This is lower by 3.15 percent versus yesterday’s close. AEV closed at 44.10 with a 4.03 percent drop.
Moreover, LTG closed at 15.24, which is lower by 3.79 percent. GTCAP closed at 803.00 — lower by 2.07 percent.
Within the Mining and Oil sector, SCC led the sub-index lower as it closed at 26.60. The figure is lower by 1.48 percent versus yesterday’s close. PX closed at 3.40 lower by 3.13 percent.
Furthermore, NIKL closed at 4.40, a fall of 1.35 percent. PXP closed at 15.38, which is lower by 0.77 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include ALI with PHP 384.83 million in traded value. SM made it to the top gainers with a traded value of PHP 248.224 million. SMPH also had PHP 245.30 million in traded value.
Significant gainers for the day include STI, which is higher by 21.31 percent; OM, by 8.57 percent; MRC, by 7.46 percent; MEG, by 4.77 percent; IRC, by 4.55 percent; and, FDC, by 4.05 percent.
On the other hand, the notable losers include TECH, which is down by 11.25 percent; IDC, by 10.94 percent; and, CIC, by 9.09 percent.
There were 82 advances and 113 declines, while 33 names remain unchanged. Value turnover totalled PHP 4.46 billion. Foreign exchange rate stood at USD 1: PHP 53.99.
BoP Reverses, Not Enough Year to Date
The Balance of Payments for August finally turned positive as a surplus was recorded after the country raised funds from the sale of yen-denominated bonds. However, the first eight months of the year, BoP is still negative during the first eight months of the year.
The BoP measures the country’s transactions with the rest of the world. A deficit means more funds left the country than what went in.
Meanwhile, a surplus means more money came in than what came out.
The country recorded a USD 1.272 billion surpluses in August, a reversal from the USD 455 million deficit in July, according to the Bangko Sentral ng Pilipinas. For the first seven months of the year, the country recorded consecutive account deficits.
The surplus in August is the first ever positive BoP for the year and the highest so far since 2013. It recorded a USD USD 2.044 billion surpluses.
The central bank stated that most of the inflows came from net foreign currency deposits of the national government and income from the BSP’s investments abroad.
The Bureau of Treasury raised USD 1.39 billion from the sale of Samurai bonds in August. It also marks the country’s return to the Japanese market after eight years.
Weakening Peso Balloons Gap
The Balance of Payments for the first eight months, however, still posted a deficit of USD 2.44 billion This is higher than the USD 1.391 billion shortfalls as of August 2017.
This is also higher than the USD 1.5 billion gaps projected by the BSP for the year.
Part of the ballooning gap is also attributed to the weakening peso which fell to more than 7 percent year to date. It marks as one of the worst performing currencies in Asia.
For the first half of the year, BoP posted a USD 3.1 billion deficit versus only a USD 133 million gaps in the same period in 2017.
Index Moves Lower
The index broke our immediate support today. The 20 SMA is now in striking distance for a bearish crossover. MACD is bearish.
RSI is also bearish and is at oversold levels. Do note though that RSI can remain at oversold levels for extended periods of time.
Next support is at 7030 followed by 6986. Expected resistance is at 7191 followed by 7242.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P385,704,609.20 as of September 20, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP14,214,802,968.80.
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