Top Ten Smart Money Moves – May 18, 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 May 18, 2017 Data)
Total Traded Value – PhP 7.493 Billion – Low
Advances Declines Ratio – (Ideal is 2:1) 124 Declines vs. 74 Advances = 1.68:1 Neutral
Total Foreign Buying – PhP 3.251 Billion
Total Foreign Selling – (PhP 3.800) Billion
Net Foreign Buying (Selling) – (PhP 0.549 Billion) – first day of Net Foreign Selling after 3 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:
Stocks sink as Q1 GDP falls below expectations
Posted on May 19, 2017
STOCKS dropped yesterday, with the main index sinking to the 7,700 level anew, as sentiment soured after the first quarter economic growth of the country fell below expectations, triggering a sell-off.
The bellwether Philippine Stock Exchange index (PSEi) lost 68.84 points or 0.88% to 7,757.69 on Thursday.
The broader all-shares gauge likewise declined 26.59 points or 0.57% to 4,626.42.
“The market obviously reacted negatively to the GDP (gross domestic product) result. After hopes were lifted by the government’s confident target of 7% for the period, [it] turned out to be a huge miss,” Justino B. Calaycay, Jr., senior research analyst at Philstocks Financial, Inc., said.
The Philippine Statistics Authority reported on Thursday that GDP growth eased to 6.4% in the first quarter of 2017, below the lower end of the government’s 6.5-7.5% target for the year and the 6.8% median growth estimate of economists in a BusinessWorld poll.
The preliminary result was also slower compared to the 6.6% posted in the preceding quarter and 6.9% in the same period last year.
Summit Securities, Inc. President Harry G. Liu said aside from the “lower-than-expected” GDP which affected sentiment, the PSEi was also dragged by persisting political worries in the United States.
“Optimism was affected with the GDP [result] but the drop was triggered by the sell-off and volatility in the US market… When the US coughs, we get sick,” Mr. Liu said.
At the close of trading yesterday, all sectoral indices ended in the red, led by property, which lost 55.85 points or 1.57% to 3,501.95.
Services also dropped 11.11 points or 0.68% to 1,602.55; industrials fell 68.74 points or 0.62% to 10,945.89; financials went down 9.21 points or 0.47% to 1,918.55; holding firms shed 32.08 points or 0.40% to 7,918.45; and mining and oil declined 17.19 points or 0.13% to 12,615.38.
Value turnover dropped to P7.49 billion yesterday from Wednesday’s P8.01 billion, with 1.02 billion shares changing hands.
Foreigners turned sellers, with net outflows logged at P549.37 million, a reversal of the previous session’s net purchases worth P510.51 million.
Decliners trumped advancers, 124 to 74, while 51 names were unchanged.
Moving forward, Philstocks’ Mr. Calaycay said sentiment could improve as investors finally digest the bigger picture amid the lower GDP print for the first quarter.
“[T]he economy is still growing at a fast pace relative to our peers, even as it is less than what our managers projected. On hindsight, this was hinted at by the not-too-stellar Q1 earnings cycle,” he said. “The market will probably spend the next couple of days looking for a firm support. A further downside may unravel but absent heavy external negatives, volatility maybe more subdued.” — ICCD
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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