The market rebounded from a low opening of the index (-0.9%) to a good closing of (+0.34%) after investors flock to PLDT (TEL) and Aboitiz Equity Ventures. The market was shaky for the last couple of days due to the news spreading of the defaulting on debt of China’s Evergrande could result to another LEHMAN Brothers if ripples across the financial markets happen

The index move up with a percentage of 0.35% at the close and its value ended to 6,881.20. Net foreign however ended selling with -216,352,763 signifying cautiousness from international investors.

As for the Blue chip index, PLDT and AEV moved the market significantly with a breakout of for TEL (5.96%) and AEV (7.22%)

1AEV 7.22%

2TEL 5.96%

3LTG 5.04%

4MER 1.73%

5CNVRG 1.60%

6SMPH 1.23%

7PGOLD 1.22%

8MPI 1.07%

9BPI 0.55%

10ALI 0.46%

11MBT 0.45%

12AGI 0.39%

13AC 0.13%

Property sector rebounded the most as the fear on the economic impact of Evergrande subsides. It closed at 0.72%

Evergrande of China

The property giant Evergrande caused ripples in the financial markets since yesterday as news about its impending Debt Default circulated on the media. As the stock price of Evergrande slide on the Hongkong index, it currently dropped by -84% from its last year price. Hongkong property index slide by as much as -6.7% due to market sentiment. Evergrande plans to restructure its looming debt of $300Billion dollars through its properties or through cash installments.

US indexes close in the red yesterday with Dow jones at -1.78% and Nasdaq composite at -2.19%

The PSE market index closed by 1.28% up from the previous two days of profit taking after barely touching the 7,000 bullish level. Majority of the Blue chip stocks recovered from the strong pullback from the previous trading days as it tried to digest news about the new granular lockdown to be implement today September 16 until the end of the month. There is also some good news on Government infrastructure building as it increase year over year.

The index closed to with a net foreign buying of 53.8Million , current level is near 7k again at 6968

Blue chip index stocks move up as seen on the below list with Globe Telecom leading at 5.26% along side power companies Aboitiz Equity Ventures (5.25%), Aboitiz Power (4.29%) and AC Energy (3.76%)

1 GLO 5.26%

2 AEV 5.25%

3 AP 4.29%

4 ACEN 3.76%

5 SMPH 2.89%

6 ICT 2.69%

7 JGS 2.45%

8 PGOLD 2.38%

9 JFC 2.26%

10 ALI 2.15%

11 AGI 1.89%

12 TEL 1.82%

13 CNVRG 1.43%

Granular lockdowns

Metro Manila is now under alert level 4 second highest restrictions with regards to levels (level 5 most severe cases). Under this level several indoor activities will be allowed by the government for fully vaccinated individuals.

DILG Undersecretary Epimaco Densing III also said that under alert level 4, several businesses can resume operations at a limited capacity of 10% which includes religious activities, dining and personal care.

For the outdoor activities this will be at 30% capacity for dine in and eateries regardless of vaccination status. According to IATF rules “Indoor dine-in services may be allowed at a limited 10% venue/seating capacity but will cater only to individuals fully vaccinated against COVID-19 in addition to their allowed outdoor or al fresco capacity”

Infrastructure Spending

Infrastructure spending of the country have significantly improve as well going to 39% for July and had a year on year increment to more than 70 Billion pesos. The government spent more on public works and information and communications equipment.