Manila, Philippines – The Philippine Stock Market continued its pullback today. The index closed at 7129.42, which is lower by 68.20 points or 0.95 percent.
The broader all-share index was lower by 0.49 percent. Most of the sub-indices were lower except for the Services sub-index.
The worst performing sector is the Mining and Oil sector, falling by 0.86 percent. The Industrials sector followed suit, dropping by 0.82 percent.
Within the Mining and Oil sector, SCC led the sub-index low as it closed at 28.25. This figure is lower by 1.91 percent versus yesterday’s close.
Meanwhile, PX locked at 3.25, which is lower by 0.91 percent. APX ended the trade at 1.64, dropping by 0.61 percent.
Within the Industrials sector, URC led the sub-index lower as it locked at 140.0. The amount is smaller by 2.78 percent versus yesterday’s close.
Furthermore, JFC ended the trade at 264.20 lower by 1.42 percent. AP locked at 33.65, a 2.46 percent fall. FB closed at 83.80, falling by 1.06 percent.
Which Stocks Traded the Largest Volume?
The most active stocks today include ALI with PHP 373.39 million in traded value. FB made it to the top gainers with a traded value of PHP 326.09 million. SMPH also had PHP 246.27 million in traded value.
Significant gainers for the day include STR higher by 34.12 percent, LTG by 6.69 percent, and ABA by 5.26 percent.
On the other hand, the notable losers include VUL falling by 13.19 percent, ECP by 7.85 percent, and NOW by 7.10 percent.
There were 74 advances and 112 declines, while 45 names remain unchanged. Value turnover totaled PHP 4.25 billion. Foreign exchange rate stood at USD 1: PHP 53.815.
Infrastructure Spending Accelerates
According to the Department of Budget and Management (DBM), infrastructure spending and capital outlay continued to accelerate in August. Roadworks and purchase of military equipment caused the increase.
Disbursements totaled PHP 68.40 billion for August, a 70.50 percent increase versus the recorded PHP 40.10 billion in August 2017.
In its latest assessment report, DBM stated that infrastructure disbursements and other capital outlay grew 70.5% to P68.4 billion in August from P40.1 billion in the same month in 2017.
Infrastructure spending and capital outlay totaled PHP 505.60 billion from January to August 2018. This amount is a 50 percent increase versus the recorded PHP 337.60 billion in the same comparable period in 2017. It is also equivalent to 65.21 percent of the full-year target of PHP 775.37 billion.
Consequently, DBM also noted that the government is yet to release the remaining PHP 269.10 billion of its PHP 3.767-trillion budget. It is 7.1 percent of full-year appropriations.
Index Continues Pull Back
The index continued its pullback for the second straight day. So far, the 15 EMA and 20 SMA act as support while the 50 SMA may act as resistance.
Additionally, MACD is still bullish. RSI is also optimistic and is currently at neutral levels.
Estimated support is at 6988 while expected resistance is at 7355.