Top Ten Smart Money Moves – December 19, 2016
Top Ten Smart Money Moves, starting January 2015, is the official trading newsletter of The Responsible Trader to promote his advocacy, Responsible Trading. This newsletter contains the previous day’s data from PSE, the Top Ten Foreign Buying and Selling, Top Ten in Total Traded Value, including Trading Notes based on the data of the previous day. This newsletter is given free to all the friends of The Responsible Trader and to members of the Facebook group and the other organizations where he is a member. For the previous issue where complete details about the newsletter was fully discussed, please refer to: Daily Top Tens October 17, 2014.
Trading Notes for Today – (Based on December 19, 2016 Data)
Total Traded Value – PhP 5.786 Billion – Low
Advances Declines Ratio – (Ideal is 2:1) 135 Declines vs. 61 Advances = 2.21:1 Bearish
Total Foreign Buying – PhP 3.049 Billion
Total Foreign Selling – (PhP 3.946 Billion)
Net Foreign Buying (Selling) – (PhP 0.897) Billion – 7th day of Net Foreign Selling after 2 days of Net Foreign Buying
Data from the Philippine Stock Exchange
Screenshot courtesy of: www.pse.com.ph
PSE HEAT MAP
Screenshot courtesy of PSEGET
Top Ten Foreign Buying and Selling
Top Ten in Total Traded Value
From now on, I will just quote the related article from Business World so that we will have everything in one piece:
Main index declines on hawkish Fed comments
Posted on December 20, 2016
LOCAL EQUITIES fell on Monday amid the absence of enough drivers to counter negative sentiment following the US Federal Reserve’s signals of more interest rate increases next year after it hiked benchmark yields last week.
The bellwether Philippine Stock Exchange index (PSEi) stumbled 1.99% or 136.58 points to 6, 714.13 on Monday.
The all-shares index fell 1.43% or 59.77 points to 4, 099.65.
The lack of fresh leads gave investors little reason to hold on to shares with only eight trading days left in this year, Luis A. Limlingan, managing director at Regina Capital Development Corp., said in a text message on Monday.
Another analyst said the market is still reacting to the US central bank’s hawkish tone following its policy meeting last week as it hinted on brisker tightening next year.
“Continued backlash from last week,” Victor F. Felix, equity analyst at AB Capital Securities, Inc., said over the phone when asked why the local market declined.
At its meeting last week, the Fed lifted interest rates by 25 basis points — its first rate increase in a year and the second in nearly a decade — and indicated three more rate increases next year.
On Monday, financials led the bloodbath as it plunged 2.99% or 50.04 points to 1,620.74. Property followed as it went down 2.84% or 87.25 points to 2,980.97; holding firms plunged 1.58% or 110.85 points to 6,905.67; industrials slid by 1.29% or 138.87 points to 10,582.72; and mining and oil declined 0.77% or 94.56 points to close yesterday’s session at 12,038.15.
Only services ended in the green, increasing 0.11% or 1.43 points to 1,281.16.
Value turnover stood at P5.79 billion on Monday, lower than the P9.55 billion seen last Friday, with 1.17 billion shares changing hands.
Decliners outnumbered advancers, 135 to 61, while 33 names ended unchanged.
Foreigners also continued to dump shares, with net selling coming in at P896.77 million, below the P937.83 million level on Friday.
With the year coming to a close and only a few major drivers seen to affect the market, analysts expect the benchmark index to trade within a tight range in the coming days.
Mr. Felix noted that the PSEi may continue to linger in the 6,700 to 6,900 levels towards the end of the year.
Most Southeast Asian stock markets likewise dropped on Monday as investors pared their equity holdings following hawkish comments from the US central bank on interest rate hikes last week.
Richmond Fed President Jeffrey Lacker said on Friday that the US central bank will likely need to raise interest rates more than three times next year.
“Investors are rationalizing their exposure on equities… In general, a more hawkish path of interest rate hikes is negative on equities,” said Ralph Christian G. Bodollo, an equity research analyst with RCBC Securities, Inc. — J.C. Lim with Reuters
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DISCLAIMER There is a very high degree of risk involved in TRADING. Past results are not indicative of future returns. Nothing contained in this newsletter constitutes a solicitation, recommendation, PROMOTION or endorsement of any security. In accordance with the Responsible TRADER’s Creed: I will never tell and you take full responsibility for all your TRADING results
NOTES: Please take note of the following changes effective August 6, 2015: 1. Caption Market Breadth has been changed to Total Traded Value to simplify the presentation. 2. Market Breadth is expressed in terms of Number of Advances and Declines. Expressing this as a Ratio by using the larger number as Numerator we derive the Market Sentiment whether Bullish or Bearish. 3. Based on Past three-year data of Average Total Traded Values, following classifications will be used to make the presentation more relevant to present times. a. Low – Total Traded Value less than P8 Billion b. Medium – Total Traded Value P8 Billion but not more than P15 Billion c. High – Total Traded Value more than P15 Billion