Manila, Philippines – The index continued to move higher today. The index ended at 7141.25, higher by 41.57 points or 0.59 percent.

The broader all-share index rose by 0.46 percent.

The rally was across the board as all sub-indices closed in the green today. The best performing sector is the Mining and Oil sector, rising by 3.05 percent. The Holdings followed with a 1.22 percent rise.

Within the Mining and Oil sector, SCC led the sub-index high as it closed at 27.90. This figure is higher by 3.14 percent versus yesterday’s close.

Meanwhile, NIKL closed at 2.80, higher by 10.24 percent. PXP locked at 16.50, an increase of 0.73 percent. APX closed at 1.55 flying by 1.97 percent.

Within the Holdings sector, SM led the sub-index high as it locked at 868.0. It rose by 2.12 percent versus yesterday’s close.

Furthermore, AEV closed at 47.00 with an increase of 3.52 percent. DMC locked at 12.50, higher by 4.17 percent. GTCAP ended the day at 740.00 with a 2.64 percent increase.

Which Stocks Traded the Largest Volume?

The most active stocks today include URC with PHP 579.17 million in traded value. SECB made it to the top gainers with a traded value of PHP 208.71 million. ALI also had PHP 199.44 million in traded value.

Significant gainers for the day include CLC, which is higher by 17.91 percent, NIKL by 10.24 percent, VUL by 8.50 percent, and FGEN by 4.31 percent.

On the other hand, the notable losers include PRMX, which dropped by 16.62 percent, and WPI by 4.92.

There were 92 advances and 85 declines, while 47 names remain unchanged. Value turnover totaled PHP 3.72 billion. Foreign exchange rate stood at USD 1: PHP 53.89.

Oil Tax Hike: a Go

The Department of Finance (DoF) believes that there may be less pressure for the government to suspend the incoming oil excise tax hike this coming January 2019.

A provision states that in case the average Dubai crude price is at USD 80 per barrel, the government needs to implement an automatic suspension on the hike.

DoF thinks that for the last quarter of the year, the average price might reach below USD 80 per barrel.

However, the government takes a cautionary stance as oil is still volatile in the market. Nonetheless, the general trend is still bullish on the uptrend.

For the past week, Dubai crude futures dropped by 2.90 percent to end the trade at USD 80.188 per barrel last Friday.

Dubai crude oil futures for the next six months was also below USD 80 per barrel. The spot price rose by 43 percent to USD 77.02 per barrel from only USD 53.86 a year ago and from August’s USD 72.23 per barrel.

Additionally, spot prices for the past 12 trading days averaged to USD 81.74 USD. This amount is 49 percent higher than the recorded USD 54.86 for the same period last year.

On October 16, the spot price dropped to USD 78.80 per barrel.

With these current updates, DoF considers the possibility of another PHP 2.00 rate hike in 2019. Another PHP 1.50 is scheduled in 2020.

Should it materialize, the hike would bring a cumulative total of PHP 6.00 per liter excise tax hike because of the TRAIN law.

Earlier, Malacañang announced its plan to suspend the incoming rate hike to douse off growing inflation concerns. Legislators from both the lower house and the upper house are also in favor of the plan.

Index Rallies Strong

We have set our immediate resistance properly at 7141, which is also the closing price today. The 20 SMA acted as perfect resistance as well.

If the price continues to move higher, it would have made a bullish crossover with the short-term moving averages. MACD also created a bullish crossover.

Furthermore, RSI trends bullishly but is at neutral levels. Estimated support is at 6906 followed by 6849.

Expected resistance is at 7264. For the uptrend to be convincing, it must at least move above 7434.

Foreign Fund Flow

PSEi registered a Net Foreign Selling worth P149,626,840.95 as of October 18, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP15,630,789,185.03.

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