Philippine Stock Market Wrap-up Report October 29, 2018

Manila, Philippines – The Philippine Stock Market saw a last-minute rally today. The index closed at 7109.03, which is higher by 44.70 points or 0.63 percent.

The broader all-share index was higher by 0.48 percent. Most of the sub-indices were up for the day except for the Property sector.

The best performing sector is the Financials sector, rising by 1.36 percent. The Holdings sector followed, with a 0.69 percent increase.

Within the Financials sector, BDO led the sub-index higher as it closed at 118.30. The figure is higher by 1.98 percent versus yesterday’s close.

Meanwhile, BPI ended the trade at 81.95 with a 1.17 percent rise. SECB locked at 142.0, a 1.72 percent increase. MBT closed at 65.00, rising by 0.78 percent.

Within the Holdings sector, JGS led the sub-index lower as it closed at 48.45. The amount is higher by 2.00 percent versus yesterday’s close.

SM locked at 900.0, which is higher by 0.56 percent. AEV closed at 46.10 with a 2.10 percent increase. DMC ended the day at 12.40, rising by 3.51 percent.

Which Stocks Traded the Largest Volume?

The most active stocks today include PXP with PHP 325.53 million in traded value. ALI made it to the top gainers with a traded value of PHP 219.75 million. BLOOM also had PHP 201.11 million in traded value.

Gainers and Losers for the Day

Most gainers for the day traded with very insignificant volume.

On the other hand, the notable losers include ECP by 6.13 percent, ISM by 4.64 percent, RLC by 4.06 percent, and NOW by 4.05 percent.

There were 97 advances and 78 declines, while 45 names remain unchanged. Value turnover totaled PHP 3.87 billion. Foreign exchange rate stood at USD 1: PHP 53.64.

Rise in Bank Bad Debts

Bangko Sentral ng Pilipinas stated that there was an increase in Bad Debts that big banks recorded in August. However, this is slower compared to the sharp rise in overall lending.

Cumulatively, non-performing loans (NPLs) totaled PHP 112.936 billion in August. It is a slight increase versus the recorded PHP 112.297 billion in July.

Consequently, it was 8.4 percent higher than the recorded PHP 104.213 billion a year ago.

NPLs are debts that are 30 days past due. These assets are classified risky because borrowers are less likely to pay their outstanding balances. This would be a loss on the part of the bank.

However, NPLs are not a source of worry since lending increased by 17.90 percent with a cumulative total of PHP 8.40 trillion. This figure is from only PHP 7.131 trillion in the same month in August 2017.

Converting the bad debts as a percentage of total loans, bad debts ratio is at 1.34 percent, lower than the recorded 1.46 percent a year ago. It means that the level of bad debts is actually more manageable for lenders.

Loans past deadline, some of which are still below the 30-day cut-off, grew faster by 29.80 percent at PHP 159.744 billion. Restructured debts or borrowings have more wiggle room to pay off existing debt was lower by 10 percent at PHP 31.729 billion.

Non-Performing Assets

Currently, non-performing assets held by big banks stood at PHP 69.896 billion. This figure represents the value of foreclosed property debtors put up as collateral for their loans.

On the other hand, non-performing assets held by big lenders steadied from last year at P69.896 billion. It represents the value of real property and other items seized from clients who failed to pay their obligations.

The central bank keenly monitors NPLs as it oversees the operations of the banks. The institution makes sure that the banks are not having a lot of bad loans in its balance sheet to protect their liquidity strength.

A Confirmed Higher Low

The index continued its ascent today even breaking above the 15 EMA and 20 SMA, which is a bullish signal.

However, the moving averages aligned bearishly. It would illustrate that the general trend is still bearish.

MACD is bullish. RSI is moving sideways and is at neutral levels. Estimated support is at 6988 followed by 6878. Expected resistance is at 7143 followed by 7355.

Stock Signals Philippines
Follow Us

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.