Manila, Philippines – The Philippine Stock Exchange Index closed slightly lower today. The main index closed at 7517.36, lower by 23.56 points or 0.31 percent. The broader all share index is down by 0.21 percent.
Sub-indices Lower Than Yesterday
Sub-indices were mostly lower today.
The best performing sub-index is the Financial sector, which rose to 0.15 percent while the worst performing sub-index is the Industrial Sector, which sank down to 0.98 percent.
Within the Financial sector, BDO led the sub-index higher as it closed at 131.20, which was higher by 1.34 percent versus yesterday’s close. RCB closed at 29.90 — higher by 1.19 percent.
Meanwhile, UBP closed at 84.00, which was higher by 1.31 percent. EW closed higher by 0.68 percent at 14.46.
Within the Industrial sector, JFC led the sub-index lower as it closed at 266.80, which was lower by 1.60 percent versus yesterday’s close. FB closed at 80.00, which was lower by 4.86 percent.
Moreover, MER closed at 351.20, which was lower by 1.65 percent. URC closed lower by 3.42 percent at 133.00.
Gainers and Losers
The most active stocks today include PGOLD with PHP 231.26 million in traded value. SMPH also made it to the top gainers with a traded value of PHP 230.84 million. BLOOM closed at PHP 211.65 million in traded value.
Significant gainers for the day include BCOR, which was higher by 50.00 percent; ORE, by 16.51 percent; ISM, by 14.75 percent, and PXP by 12.93 percent. FOOD and FERRO joined the list, closing at 10.00 percent and 6.02 percent higher, respectively.
On the other hand, the notable losers include ABA, which was down by 6.67 percent; PHN, by 5.66 percent; PHEN, by 5.08 percent; ABG, by 4.74 percent; and, BHI, by 3.90 percent.
There were 91 advances and 108 declines, while 490 names remain unchanged. Value turnover totaled PHP 4.23 billion. Foreign exchange rate stood at USD 1: PHP 53.47.
2019 National Budget
The deadlock between the Executive and the Legislative branches appears to break concerning the national budget for next year. House Speaker Gloria Macapagal Arroyo said that they would likely resume deliberations to meet the deadline for the spending plan’s approval.
The proposed 2019 national budget is PHP 3.757 trillion — slightly lower versus the 2018 budget of PHP 3.767 trillion. Legislators are wary that this might limit or disregard many local development projects.
However, the Budget Department explained that the decline was attributed to a shift to a “cash-based” system. The budget only includes projects that can be auctioned off and awarded in 2019.
The plan is different from the auction-based system, which allows up to two years to bid and award. The change is a vital step in the current administration to end years of state underspending that resulted in a capped economic growth.
Furthermore, some legislators are lobbying for a hybrid provision that would compromise to extend select development projects to one year and six months.
The legislators compared this to the calamity fund that is sometimes extended up to more than a year if no major calamities occur.
Meanwhile, the Senate expressed its support to the Executive’s cash-based scheme. They have conducted a parallel budget hearing despite the general rule that it must still wait for the approval of the House version before it can proceed with its own investigation.
Budget Secretary Benjamin Diokno said that the legislators want a bigger budget for the election year. For congressmen, they must have more projects to impress their constituents.
The original target date for Congress to have an approved budget is on November 30, 2018.
Touching the Bottom Line of Support
The market touched the bottom line of our immediate support today. The short-term moving averages, 15 EMA and 20 SMA, are still acting as resistance while the medium term 55 SMA as support.
Moreover, the MACD line crossed the signal line and moved in a bearish manner. RSI is bearish as well but is not yet at oversold levels.
The 61.80 percent Fibonacci retracement line form the recent run-up is also acting as resistance. 7482 is the estimated support while 7635 is the expected resistance.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P884,017,830.10 as of August 16, 2018.
On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP5,479,235,461.83.
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