Manila, Philippines – The Philippine Stock Exchange Index made new three month-lows today.
The index dipped at the 6700+ level before regaining ground at market run-off close to 6884.38, down by 116.76 points or 1.67 percent.
The broader all-share index declined by 1.34 percent.
The drop was across the board as all sub-indices closed in the red today.
The worst performing sector is the Holdings sector down at 2.26 percent followed by the Property sector falling by 2.12 percent.
Within the Holdings sector, SM led the sub-index lower as it closed at 850.50, down by 2.65 percent versus yesterday’s close.
Meanwhile, AC closed at 882.0, lower by 2.93 percent. GTCAP locked at 45.40, a decline of 0.24 percent. MPI closed at 4.97, down by 2.91 percent.
Within the Property sector, ALI led the sub-index lower as it closed at 38.50. The amount is down by 3.09 percent versus yesterday’s close.
Moreover, RLC closed at 19.10, lower by 1.10 percent. SMPH closed at 33.70, 3.69 percent drop. MEG locked at 4.08, a decline of 1.93 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include BDO with PHP 614.67 million in traded value. ALI made it to the top gainers with a traded value of PHP 392.61 million.
SM also had PHP 328.10 million in traded value.
Gainers and Losers for the Day
Significant gainers for the day include HVN higher by 5.66 percent, and TECH by 4.18 percent.
On the other hand, the notable losers include ECP, falling by 23.64 percent, NOW by 15.34 percent, STR by 13.68 percent, MJC by 13.04 percent, and ORE by 10.68 percent.
The list of droppers also includes TBGI by 10.38 percent, ALCO by 9.68 percent, IDC by 9.62 percent, GERI by 9.09 percent, and CHP by 9.09 percent.
There were 39 advances and 167 declines, while 34 names remain unchanged. Value turnover totaled PHP 5.35 billion.
Foreign exchange rate stood at USD 1: PHP 54.18.
FDI’s Register Positive Growth in July
Foreign direct investments (FDI) registered positive inflows for July.
FDIs are solid business expansions in the country that help create jobs in the country.
FDI’s doubled as strong inflows registered from intercompany loans as well as equity capital as recorded by the Bangko Sentral ng Pilipinas (BSP).
Net inflows totaled USD 914 million for July, higher than the recorded USD 831 million in June.
This is also 165 percent higher than the recorded USD 344 million in July 2017.
Furthermore, this is the second biggest inflow for the year; the highest recorded in May at USD 1.645 billion.
From January to July, the country recorded a net inflow to FDI’s amounting to USD 6.669 billion, 52.1 percent higher than the recorded USD 4.385 in the same period of 2017.
This also brings the BSP’s target at a striking distance of USD 9.2 billion for the year. However, this is lower than the recorded USD 10.049 billion in 2017.
Equity investments amounted to USD 261 million for July, almost double the recorded USD 137 million last year.
Gross placements rose by 60.60 percent to USD 278 million but got partly offset by a flight of capital amounting to USD 17 million.
In July 2017, equity capital inflows totaled USD 173 million while withdrawals amounted to USD 36 million.
Reinvested earnings, on the other hand, totaled USD 69 million, slightly lower by 2.3 percent from the recorded USD 71 million in the same month last year.
Foreign lendings to their subsidiaries or affiliates in the Philippines was higher by four-folds at USD 584 million in July versus the USD 136 million a year ago.
Majority of the inflows went to manufacturing, real estate, financial and insurance, retail and wholesale trade, administrative, and support service activities. Most of the capital came from Singapore, Japan, United States, Hong Kong, and China.
The country still lags compared to its Asian neighbors in attracting foreign capital.
Constitutional limits on foreign ownership, as well as uncertainties on the new system for tax incentives, is the main reason.
The second tax reform package currently discussed in the Senate aims to cut income tax gradually from 30 to 20 percent by slashing two percentage points every other year starting 2021.
It will also limit incentives to a single menu for all industry types.
Perks will also be capped at five years, and all other redundant incentives will be removed.
Index Makes One-Year Lows
The market made new 52-week lows today.
The moving averages are bearishly aligned with 15 EMA and 20 SMA as immediate resistance.
MACD is bearish. RSI is dipping at oversold levels. Support is estimated at 6849 while resistance is expected at 6928.
Foreign Fund Flow
PSEi registered a Net Foreign Selling worth P861,127,892.42 as of October 11, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP16,230,289,387.39.
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