Top Ten Smart Money Moves – July 26, 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 July 26, 2016 Data)
Total Traded Value – PhP 9.300 Billion – Medium
Market Breadth and Sentiment indicated by Advances Declines Ratio – (Ideal is 2:1 to be considered Bullish or Bearish) 130 Declines vs. 71 Advances = 1.83:1 Neutral
Total Foreign Buying – PhP 4.785 Billion
Total Foreign Selling – (Php 3.562) Billion
Net Foreign Buying (Selling) Php 1.223 Billion – 2nd day of Net Foreign Buying after a day of Net Foreign Selling
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:
Local equities dip as investors pocket gains
Posted on July 27, 2016
PHILIPPINE stocks dipped on Tuesday as investors pocketed gains, a day after President Rodrigo R. Duterte’s first State of the Nation Address.
The benchmark Philippine Stock Exchange slipped 0.31% or 24.59 points to close at 8,024.54, while the broader all-shares index declined 0.61% or 29.12 points to 4,777.86.
“It’s mainly profit taking since market is trading near historic levels and current valuations may not be justified at this point given lack of catalysts,” Unicapital Securities, Inc. research head Lexter A. Azurin said in a phone interview.
Mr. Azurin added that investors may be liquidating at this point ahead of “ghost month,” referring to August.
According to Chinese belief, ghosts roam the earth every August, making it inauspicious for business.
Luis A. Limlingan, managing director at Regina Capital Development Corporation, noted based on 2016 levels, the market is currently trading at around 20 times its price-earnings ratio. Price-earnings ratio is a valuation tool that measures how much an investor pays for every peso in earnings per share a stock generates.
“Although that’s because there is confidence in growing economy,” he said in a phone interview.
Holding firms saw the biggest losses, declining by 1.17% or 93.08 points to 7,885.01 followed by mining and oil which fell 0.82% or 92.11 points to 11,082.38 and property which dipped 0.33% or 12.21 points to 3,651.95.
Services advanced 0.39% or 6.40 points to 1,656.12; industrial increased 0.25% or 30.38 points to 12,138.82; and financials climbed 0.06% or 1.05 points to 1,820.10.
Decliners outnumbered advancers, 71 to 130, while 53 names were unchanged.
Foreigners were net buyers with purchases reaching P1.22 billion, significantly bigger than the P633.95 million at Monday’s close.
Value turnover reached P9.3 billion, lower than P10.18 billion booked on Monday, as 2.09 billion shares changed hands.
Meanwhile, Southeast Asian stock markets were cautious on Tuesday as investors steered away from risky assets ahead of central bank meetings in the United States and Japan.
The US Federal Reserve is expected to hold interest rates steady on Wednesday, but traders will be closely parsing its statement for clues on policy direction.
“Investors are on a wait-and-see mode right now, ahead of the Fed meeting,” said Mikey Macanaig, an analyst with Sunsecurities Inc.
“We don’t know what the impact of Brexit is and it’ll be a big risk for the U.S. to hike interest rates so soon.”
Meanwhile, the Bank of Japan is expected to ease policy later this month, according to a majority of economists polled by Reuters, who said a combination of measures would be used in another attempt to boost anaemic inflation.
“Japan is in a risky situation right now, but we definitely are expecting some sort of an economic easing in Japan,” said Mr. Macanaig. — JCL with Reuters
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
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