Top Ten Smart Money Moves – June 19, 2017
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 June 19, 2017 Data)
Total Traded Value – PhP 7.089 Billion – Low
Advances Declines Ratio – (Ideal is 2:1) 102 Declines vs. 91 Advances = 1.12:1 Neutral
Total Foreign Buying – PhP 3.343 Billion
Total Foreign Selling – (PhP 3.508) Billion
Net Foreign Buying (Selling) – (PhP 0.165) Billion – first day of Net Foreign Selling after 15 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:
Bargain hunting lifts PSE, but solid leads awaited
Posted on June 20, 2017
INVEST0RS bought bargain stocks on Monday, allowing the Philippine Stock Exchange index (PSEi) to finish 61.53 points or 0.78% higher to close at 7,943.75.
Harry G. Liu, president of Summit Securities, Inc., described the main index’s performance as a continued sideways movement in the absence of any “major catalyst.”
“Wala lang news na kakapitan para lumusot sa 8,000 (There was no news to hold on to for PSEi to break past 8,000),” he said. “It has been going sideways.”
Yesterday, all the indices turned in positive results. The broader all-shares index moved up 28.06 points or 0.59% to finish at 4723.21.
All sectors recorded modest gains, with holding firms taking the lead with a 94.95-point rise or 1.22% rise to 7,834.49. Industrials followed, climbing 116.24 points or 1.05% to 11,158.48. Property stocks increased by 28.24 points or 0.76% to 3,744.94. Financials rose by 4.22 points or 0.21% to 1,930.25. Services edged up 1.37 points or 0.07% to 1,748.44, while mining and oil inched 5.41 points or 0.04% higher to 12,465.65.
But decliners outnumbered advancers at 102 versus 91, while 49 issues finished unchanged. Value turnover was at P7.09 billion, about four times less than Friday’s P29.07 billion.
Foreign funds sold more shares than they bought, resulting in a net selling of P165.86 million worth of stocks, a reversal from their P606.89-million net buying on Friday last week.
“All we need is something so positive that will [make the PSEi] break the 8,000 level,” Mr. Liu said, adding that once that point is breached, the rise “will be very fast.”
He added that the Bangko Sentral ng Pilipinas’ (BSP) monetary policy direction “is not going to be very concerning.”
But for Luis A. Limlingan, business development head at Regina Capital Development Corp., the BSP’s pronouncement is awaited by the market, which he said resumed its bargain-hunting mode yesterday after Friday’s sharp sell-off.
“With various regional central banks discussing their later monetary policy, attention is now shifting focus to our own BSP, which will meet later in the week,” he said.
Mr. Limlingan said many are expecting the central bank to leave policy rates unchanged, keep the overnight reverse repurchase rate at three percent, the overnight deposit rate at 2.5% and the reserve requirement ratio (RRR) at 20%.
He said he continues to expect the BSP to raise policy rates twice, by 25 basis points each time, this year. He added his expectation had been pushed back for the first rate hike to the third quarter “and into the term of the new BSP governor.”
“At this stage we do not expect an RRR cut as domestic liquidity continues to grow at a healthy pace, the banking system remains flush with liquidity in excess of reserve requirements and the economy is growing at a healthy pace with inflation moving up significantly over the past year,” he said. — Victor V. Saulon
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1. The Book: “The Responsible Trader – a Thinking Person’s Guide for Trading the Philippine Stock Market” now earned the name “The Bible of Philippine Trading.” You can download Chapter 1, Section 1 of the book here: http://theresponsibletrader.com/the-responsible-trader-hope-for-trading-knowledge-test/.
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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 PhP 8 Billion b. Medium – Total Traded Value Php 8 Billion but not more than P15 Billion c. High – Total Traded Value more than Php 15 Billion