Philippine Stock Market Wrap-up Report: October 22, 2018

Manila, Philippines – The Philippine Stock Market rallied strongly today. The index closed at 7236.16, which is higher by 84.64 points or 1.18 percent.

The broader all-share index locked in higher by 0.90 percent compared to last week’s close.

Most of the sub-indices were higher except for the Mining and Oil sub-index.

The best performing sector is the Financials sector, rising by 1.74 percent. The Holdings sector followed suit with a 1.48 percent increase.

Within the Financials sector, BDO led the sub-index high as it closed at 122.90. The figure is higher by 2.59 percent versus last week’s close.

Meanwhile, MBT ended the day at 69.00, which is higher by 4.47 percent. BPI locked at 83.35 with a 0.48 percent increase. EW closed at 11.72, a rise of 2.81 percent.

Within the Holdings sector, SM led the sub-index high as it closed at 878.00. The amount is a 1.50 percent increase versus last week’s close.

Moreover, AC closed at 928.5, which is higher by 2.03 percent. GTCAP locked at 775.00, an increase of 6.38 percent. JGS ended the trade at 48.75, a 1.56 percent rise.

Which Stocks Traded the Largest Volume?

The most active stocks today include SMPH with PHP 441.42 million in traded value. ALI made it to the top gainers with a traded value of PHP 379.42 million. MBT also had PHP 359.25 million in traded value.

Significant gainers for the day include IRC, which is higher by 12.17 percent, AT by 11.49 percent, TUGS by 8.37 percent, GTCAP by 6.38 percent, and PX by 5.90 percent.

On the other hand, the notable losers include ABA, falling by 4.17 percent, RLC by 3.50 percent, and SCC by 3.05 percent.

There were 107 advances and 83 declines, while 38 names remain unchanged. Value turnover totaled PHP 4.29 billion. Foreign exchange rate stood at USD 1: PHP 53.70.

PSE to Meet Fund Raising Target

Year to date, the Philippine Stock Exchange (PSE) already raised PHP 181.68 billion. This figure is already above the previously recorded PHP 160 billion funds raised in 2017.

The institution is confident that it can breach the PHP 200 billion mark as the shares of San Miguel Food and Beverage are set to list additional shares in the fourth quarter.

Previous PSE President Hans Sicat targetted this goal but was unable to reach it.

San Miguel Food and Beverage Inc (SMFB) will conduct a follow-on-offering during the fourth quarter. The company plans to sell a total of 522.96 million common shares.

The figure mentioned does not include up to another 15 percent of the overallotment option. The target price is between PHP 85-PHP 95.

Even without the overallotment option, the offering will raise PHP 49.68 billion of fresh funds.

The announcement of the final price is on October 25, 2018. The schedule of delivery of the shares is on November 12, 2018.

This record high level is not too farfetched despite the market downtrend and the increase in market volatility. Two firms, namely Del Monte Philippines and Cal-Comp Technology (Philippines) Inc., even chose to move their initial public offering next year.

For this year alone, only D.M. Wenceslao, Inc., conducted an IPO for its expansion plans. The company raised PHP 8.15 billion from the said offering.

On the other hand, DoubleDragon Properties Corp. and Global Ferronickel Holdings Inc. conducted a follow-on-offering this year. Both companies raised PHP 4.5 billion and PHP 517.50 million, respectively.

IRC Properties Inc., Basic Energy Corporation, Golden Bria Holdings Inc., and China Banking Corporation also benefited and raised funds through a private placement.

Subsequently, PSE also targets the implementation of securities borrowing and lending, and short selling before the year ends. For the initial application, only the PSE member stocks and 10 percent of the outstanding shares will be eligible for short selling.

This new feature is available both to foreign and local investors.

Index Makes  A Bullish Crossover

The index appears to make a bullish crossover with the 15 EMA and 20 SMA signaling a possible start of an uptrend.

The 15 EMA and 20 SMA are now expected as support. MACD is trending bullishly. RSI is also bullish but is not overbought.

Meanwhile, estimated support is at 7143. The index must at least break the 7435 level to create a firm and convincing uptrend.


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