Manila, Philippines – The Philippine Stock Exchange Index took a full reverse of its rally yesterday. The index closed at 7332.17, which is lower by 101.44 points or 1.36 percent.
The broader all-share index is lower by 0.81 percent. The drop was across the board as all sub-indices were down for the day.
The worst performing sub-index is the Property sector, falling by 2.40 percent. The Financials sector followed suit with a 1.85 percent drop.
Within the Financials sector, BPI led the sub-index lower as it closed at 85.00. This figure is lower by 3.63 percent versus yesterday’s close.
Moreover, MBT closed at 68.50, which is lower by 2.00 percent. BDO closed at 119.0, a drop of 1.65 percent. CHIB closed at 29.20 with a 1.52 percent decline.
Within the Property sector, SMPH led the sub-index lower as it closed at 35.70. This figure is lower by 3.51 percent versus yesterday’s close.
Furthermore, ALI closed at 39.85, a drop of 2.57 percent. RLC closed at 19.42, which is lower by 0.61 percent. Meanwhile, DD closed at 21.30, a drop of 0.93 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include ALI with PHP 339.38 million in traded value. SMPH made it to the top gainers with a traded value of PHP 295.19 million. AC also had PHP 177.68 million in traded value.
Significant gainers for the day include ABA, an increase of 7.41 percent, BLOOM by 7.36 percent, and X by 6.19.
Significant losers include ABG down by 9.23 percent, PGOLD by 4.03 percent, TBGI by 3.77 percent, BPI by 3.63 percent and SMPH by 3.51 percent.
There were 81 advances and 99 declines, while 55 names remain unchanged. Value turnover totalled PHP 3.39 billion. Foreign exchange rate stood at USD 1: PHP 54.23.
August Marks Fiscal Deficit
The country recorded a balanced deficit in August according to the Bureau of the Treasury (BTr). It is a reversal from the surplus recorded a year ago as expenditures outpaced revenue growth.
August 2018 recorded a PHP 2.6 billion fiscal deficit, a reversal from the PHP28.80 billion surplus recorded in August 2017.
Revenues reached PHP 256.9 billion from January to August 2018, an 11 percent growth from the PHP 230.40 billion recorded in the same period last year. However, it was lower versus the 24 percent growth recorded in July.
A bulk of these revenues came from tax collections totalling PHP 239.80 billion. This amount is a 13 percent rise versus last year’s PHP 212.20 billion.
Tax revenues were further divided between the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC). BIR collected PHP 185.10 billion in taxes, an 8 percent rise versus last year’s PHP 171.1 billion.
On the other hand, BoC collected PHP 52 billion, a 36 percent rise versus last year’s PHP 38.30 billion a year ago. This figure is due to the higher exchange rate, proper valuation, higher oil prices, and strong enforcement and revenue enhancing measures.
Other revenue offices collected taxes of PHP 2.7 billion.
Non-tax revenues totalled PHP 17.1 billion in August, a 6 percent decline from the PHP 18.2 billion in the same month in 2017.
Higher Government Expenditures
Government expenditures totalled PHP 259.50 billion for August. This amount is a 29 percent growth from only PHP 201.60 billion in August 2017.
Majority of the expenditures went to capital outlays which totalled PHP 231.20 billion. It is 32 percent higher than the PHP 175.20 billion a year ago.
The rest went to interest payments totalling PHP 28.30 billion, an increase of 7 percent from PHP 26.40 billion a year ago.
For the 8-month ended August 2018, the government booked a PHP 282-billion deficit. This figure is 60 percent larger than the PHP 176.20 billion in 2017.
This figure equates to 54 percent of the full-year deficit target at PHP 523.68 billion/
For the same 8-month period, revenues totalled PHP 1.91 trillion. It is 19 percent higher than the PHP 1.60 trillion recorded in the same period in 2017.
On the other hand, expenditures reached PHP 2.19 trillion, a 23 percent rise versus PHP 1.78 trillion in 2017.
Index Moves Higher
The rally yesterday was rejected by the 15 EMA and the 50 percent Fibonacci retracement line. A dark shadow candle was formed today.
Moreover, the short and medium term moving averages are bearishly aligned. MACD is bearish.
Nevertheless, RSI is turning bearish again but is currently at neutral levels. Estimated support is at 7242 followed by 7191. Expected, resistance is at 7391.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P160,445,125.53 as of September 25, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP15,203,929,757.20.
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