Manila, Philippines – The Philippine Stock Exchange Index closed slightly higher than yesterday. The index concluded at 7320.59, higher by 52.38 points or 0.72 percent.
The broader all-share index is higher by 0.52 percent.
The mixed sub-indices recorded Financial and Industrial sectors low. Holdings, Property, and Service sectors closed higher than yesterday. Meanwhile, the Mining and Oil industry ended flat for the day.
The worst performing sub-index is the Industrial sector, falling by 0.59 percent. The best performing sub-index is the Property sector, with an increase of 1.32 percent.
Within the Property sector, ALI led the sub-index higher as it closed at 41.30. This figure is higher by 2.10 percent versus yesterday’s close.
Moreover, SMPH closed at 37.25, a rise of 1.09 percent. RLC closed at 20.30, which is higher by 3.47 percent. MEG closed at 4.43 with an increase of 0.68 percent.
Within the Industrial sector, JFC led the sub-index lower as it closed at 259.0. This figure is lower by 2.70 percent versus yesterday’s close.
Furthermore, MER closed at 346.0 lower by 0.57 percent. CHP closed at 2.30, lower by 4.17 percent. FGEN closed at 16.76, lower by 0.71 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include TEL with PHP 265.02 million in traded value. JFC made it to the top gainers with a traded value of PHP 209.56 million. AC also had PHP 209.55 million in traded value.
Significant gainers for the day include GLO, which is higher by 6.49 percent; IRC, by 6.31 percent; RCI, by 5.76 percent; MHC, by 5.17 percent; BRN, by 4.76 percent; and, ORE, by 4.59.
On the other hand, the notable losers include X, which dropped by 7.85 percent; DMC, by 4.84 percent; and, TEL, by 4.76 percent.
There were 85 advances and 101 declines, while 45 names remain unchanged. Value turnover totalled PHP 4.52 billion. Foreign exchange rate stood at USD 1: PHP 54.235.
Strong Rate Hike Expected
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo said that the bank would take firm action on its meeting today. The increase approved today would be the fourth rate hike in a row this year.
The bank would increase rates by another 50 basis points (0.50 percent) to fend off inflation and support the weak peso.
The BSP had already hiked a total of 100 basis points since May. However, it is not enough to stop the ballooning inflation as it steadily rises in the past few months.
Guinigundo also added that the banks had other tools in place to help fight inflation. These tools include the raising of the reserve requirement, currently at 18 percent. It may be adjusted to 20 percent should there be a need.
Inflation already averaged 4.8 percent for the past eight months, exceeding the BSP’s full-year target of 4.90 percent.
Despite the effects of the typhoon last month, some analysts believed that the inflation has already peaked. They expect prices to ease as additional rice supply from harvest and imports may start coming in.
Analysts also anticipate that the peso may weaken up to PHP 55 by the end of the year.
As of writing, the central bank already announced that they rose benchmark rates by another 50 basis points.
A Possible Higher Low Marked
The market was quite shaky today but finally finished higher and at its highs today. However, the moving averages are still bearishly aligned and may act as resistance.
Moreover, MACD is moving sideways and may do a bullish crossover. RSI is also moving sideways. Estimated support is at 7242 followed by 7191 while expected resistance is at 7413 followed by 7627.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P520,496,796.42 as of September 27, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP13,942,486,312.73.
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