Top Ten Smart Money Moves – October 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 October 19, 2016 Data)
Total Traded Value – PhP 12.160 Billion – Medium
Market Breadth and Sentiment indicated by Advances Declines Ratio – (Ideal is 2:1 to be considered Bullish or Bearish) 119 Advances vs. 76 Declines = 1.57:1 Neutral
Total Foreign Buying – PhP 7.692 Billion
Total Foreign Selling – (PhP 6.626) Billion
Net Foreign Buying (Selling) – PhP 1.066 Billion – first day of Net Foreign Buying after 10 days 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:
PSEi returns to 7,700 as markets cheer China data
Posted on October 20, 2016
PHILIPPINE shares rallied for a second straight day to bring the benchmark index past 7,700 level as most Asian markets cheered favorable economic data from China.
The Philippine Stock Exchange index (PSEi) added 150.42 points or 1.98% to close at 7,721.57. Meanwhile, the broader all shares index gained 74.11 points or 1.66% to close at 4,534.49.
“Most Asian markets really advanced because of the release of China’s third quarter GDP results. So it’s well within the gross target of 6.5% to 7%. It’s a sign of confidence and it dispersed a bit of the gloomy sentiments from the past few weeks in our market,” said AB Capital Securities analyst Victor F. Felix said by phone yesterday.
Reuters reported that China’s economy grew 6.7% in the third quarter, putting it on track to hit its full-year target, on the back of stronger government spending, record bank lending and a red-hot property market that are adding to its growing pile of debt.
“Basically, it’s just continued momentum from yesterday’s rally, further spurred by net foreign buying of a very significant 1 billion. There was also really strong market participation with market tally of over 10 billion.”
After sessions of net foreign selling, the market shifted to a net foreign buying position of P1.07 billion.
Moreover, he said that the third quarter corporate earnings results would dictate if yesterday’s level could be sustained.
“We have to see if 7,700 holds at a strong support level. The next coming weeks would be the release of third quarter corporate results. We’ll see if the earnings would justify this high a level.”
Justino B. Calaycay, Jr., head of marketing and research at A&A Securities, Inc., shared this opinion.
“China’s latest GDP, retail sales and industrial numbers provided a lift to regional sentiment with practically all indexes trading in the green,” he said in an e-mail sent to reporters yesterday.
Apart from this, he added other factors that also influenced the movement in the market.
In particular, he cited US and European stocks rallying overnight in light of expected gradual adjustments by the Federal Reserve, falling Japanese equities, oil prices hovering between $50 and $60 per barrel, and President Rodrigo R. Duterte’s state visit to China.
Property led the gains, up 2.38% or 79.98 points to close at 3,427.21.
Financials followed, jumping 2.1% or 38.02 points to close at 1,844.92; holding firms climbed 1.76% or 135.14 points to close at 7,801.11; industrials added 1.73% or 201.50 points to close at 11,845.15; mining and oil gained 1.58% or 179.44 to close at 11,531.93; services increased 1.57% or 22.83 points to close at 1,473.82.
Value turnover jumped to P12.16 billion after 1 billion shares changed hands from P8.35 billion on Tuesday.
There were 119 advancers, 76 decliners, while 40 remained flat. — Roy Stephen C. Canivel
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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