Philippine Stock Market Wrap-up Report: October 19, 2018

Manila, Philippines – The Philippine Stock Exchange index closed slightly high today. It ended at 7151.52, which is higher by 10.27 points or 0.14 percent.

The broader all-share index was lower by 0.06 percent.

Within the mixed sub-indices, the Financials, Property, Mining, and Oil closed higher than yesterday’s figures. Meanwhile, the Industrial, Holdings, and Service sectors ended the week low.

The best performing sector is the Mining and Oil sector, rising by 2.21 percent. On the other hand, the worst performing sector is the Industrial sector, which fell by 0.28 percent.

Within the Mining and Oil sector, SCC led the sub-index high as it closed at 29.50. This figure is a 5.73 percent increase versus yesterday’s close.

Furthermore, APX closed at 1.59, which is higher by 2.58 percent. LCB locked at 0.1120 with a 1.82 percent rise while AT ended the trade flat at 2.61 as no trades were made.

Within the Industrials sector, URC led the sub-index lower as it closed at 145.90. This amount is lower by 0.41 percent versus yesterday’s close.

Moreover, PCOR locked at 8.25 lower by 2.94 percent. IMI tapped down at 11.90 with a 2.46 percent fall. FGEN locked at 15.90 with a drop of 0.50 percent.

Which Stocks Traded the Largest Volume?

The most active stocks today include URC with PHP 418.51 million in traded value. MER made it to the top gainers with a traded value of PHP 273.80 million. SCC also had PHP 255.36 million in traded value.

Gainers and Losers for the Day

Significant gainers for the day include ABA with a 6.67 percent increase, PRMX by 5.98 percent, TBGI by 5.88 percent, and SCC by 5.73 percent.

On the other hand, the notable losers include SHLPH, which dropped 5.33 percent, APC by 4.40 percent, GLO by 4.25 percent, SMC by 4.24 percent, and AR by 4.17 percent.

There were 92 advances and 88 declines, while 48 names remain unchanged. Value turnover totaled PHP 4.91 billion. Foreign exchange rate stood at USD 11:PHP 53.965.

Philippine Banks Stable

S&P Global Ratings said that banks in the Philippines will remain stable regardless of volatility in the global markets and a weakening peso. This is also despite a slower-than-expected economic growth in the next two years.

Furthermore, S&P reiterated that most Southeast Asian markets are unlikely to be hit hard by rising global economic risks, as reflected by volatile stock markets, skittish bond markets, and depreciating currencies.

In this environment, the ratings agency sees local banks on good fiscal footing even if peso lately fared worse against the dollar than its Southeast Asian peers. The depreciating peso is not much of a worry since foreign exposure is low and most borrowings were made domestically.

However, the agency warns that the peso depreciates more due to the widening account deficit rather than external factors.

As of the first half of the year, current account deficit reached USD 3.1 billion from only USD 133 million in 2017. It also matches the full-year target as exports continue to decline while imports is growing by double digits.

The current gap is roughly 0.90 percent of the Gross Domestic Product.

S&P estimates that the country’s economy will grow by 6.5 percent this year, and 6.6 percent in 2019. Initially, the agency estimated that the PH economy will grow by 6.7 percent and 6.8 percent, respectively.

On Tuesday, economic managers cut their forecast to 6.5 percent-6.9 percent from the initial 7-8 percent full target for the year.

Index Rallies Strong

The index appears to breach resistance today. Price is trying to get above the 15 EMA and 20 SMA.

Consequently, MACD made a bullish crossover. RSI is also bullish but is not yet at overbought levels. Estimated support is at 6988 while expected resistance is at 7355.

Foreign Fund Flow

PSEi registered a Net Foreign Selling worth P220,424,137.01 as of October 19, 2018. On a 30-day trading period, PSEi is on a Net Foreign Selling worth PHP14,430,160,223.71.

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