Top Ten Smart Money Moves – November 22, 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 November 22, 2016 Data)
Total Traded Value – PhP 6.962 Billion – Low
Advances Declines Ratio – (Ideal is 2:1) 131 Declines vs. 88 Advances = 2.08:1 Bearish
Total Foreign Buying – PhP 3.424 Billion
Total Foreign Selling – (PhP 4.286 Billion)
Net Foreign Buying (Selling) – (PhP 0.862) Billion – 3rd day of Net Foreign Selling after a day 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:
Index back in the red this year on foreign selling
Posted on November 23, 2016
THE LOCAL MARKET extended its slide yesterday, with the main index back in the red for the year thus far, as foreign selling persisted amid hopes of a deal among oil-producing countries to cut production and the anticipated rate hike in the United States next month.
The benchmark Philippine Stock Exchange index (PSEi) gave up 176.33 points or 2.53% to close trading at 6,802.73 on Tuesday. The bellwether is now 149.35 points below its end-2015 close of 6,952.08.
The broader all shares index also declined 84.46 points or 2% to end at 4,138.16 yesterday.
Luis A. Limlingan, business development head at Regina Capital Development Corp., said “the market saw heavy selling on improving economic outlook in the US” which supports expectations of a rate increase in the world’s largest economy by December.
“The PSEi continued to sell off as foreign funds flocked to the US market, closing in record territory as oil prices surged 4%, the greenback’s withering rally paused and the bond market selling relented.”
He said there was also a “high probability” that the Organization of the Petroleum Exporting Countries (OPEC) can agree on an output freeze at its Nov. 30 meeting.
“Economic drivers in the US are improving so it makes better sense for investors to place back their funds there plus the peso has been depreciating, and there’s the rate hike looming in the US,” Mr. Limlingan added.
“We’re an outlier (yesterday). Most Asian markets closed higher, on the back of rising oil prices ahead of the OPEC meeting,” Victor F. Felix, equity analyst at AB Capital Securities, Inc., said by phone.
He added that stocks declined mainly on “foreign outflows as local investors did not put much effort of supporting the market.”
“Everyone’s in a wait-and-see mode ahead of the OPEC and Fed meeting,” Mr. Felix added.
Foreigners continued to dump their shareholdings, as net selling grew to P862.21 million yesterday from the P694.43 million seen on Monday.
Most sub-indices closed in the red except mining and oil which gained 51.10 points or 0.43% to end at 12,041.06.
Property and holding firms led the bloodbath as both counters declined by 3.06% or 94.97 points to 3,008.97 and by 216.37 points to 6,863.91, respectively. Services slid 1.82% or 23.85 points to 1,287.17; financials dropped 1.42% or 24.34 points to 1,688.09; and industrials went down by 1.07% or 119.70 points to close at 11,034.09.
Decliners beat advancers, 131 to 63, while 37 issues were unchanged. Value turnover rose to P6.96 billion as 3.58 billion shares changed hands, from the previous session’s P5.67 million.
For today’s trading, both analysts said overseas developments will continue to drive market sentiment.
Regina Capital’s Mr. Limlingan said the PSEi could test the 6,800 support and the resistance of 6,900 in the short term. For AB Capital’s Mr. Felix, the index could move within the 6,700 to 6,850 level today. — Imee Charlee C. Delavin
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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