Top Ten Smart Money Moves – September 27, 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.
Top Ten Smart Money Moves – September 27, 2016
Trading Notes for Today – (Based on September 27, 2016 Data)
Total Traded Value – PhP 7.760 Billion – Low
Market Breadth and Sentiment indicated by Advances Declines Ratio – (Ideal is 2:1 to be considered Bullish or Bearish) 147 Declines vs. 51 Advances = 2.88:1 Bearish
Total Foreign Buying – PhP 3.872 Billion
Total Foreign Selling – (PhP 3.890) Billion
Net Foreign Buying (Selling) (PhP 0.0180) Billion – 24th 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: ==================================================
Stocks slip to 7,500 as foreign selling continues
By Keith Richard D. Mariano, Reporter
Posted on September 28, 2016
THE LOCAL stock barometer traded further south to revisit the 7,500 territory, as foreign investors dumped more shares for the 24th consecutive session amid political uncertainties worldwide, including concerns over President Rodrigo R. Duterte’s pronouncements.
The Philippine Stock Exchange index (PSEi) plunged for the third consecutive session to settle 75.12 points or 0.98% lower at 7,557.34 on Monday. The broader all-shares, meanwhile, declined further by 40.67 points or 0.90% to 4,495.93.
“It [fell on] continued selling pressure from foreign funds and — I mean, these are exacerbated by all these political noise,” Victor F. Felix, equity analyst at AB Capital Securities, Inc., said in a telephone interview.
“Last week, S&P (Standard and Poor’s Global Ratings) released a report that an upgrade for the Philippines is unlikely in the near future because of the unpredictability in policy. If there is a headline-grabbing rhetoric… that definitely adds to the uncertainty.”
Foreign investors have been trimming their local shareholdings since Aug. 23. Analysts have expected such a behavior leading to the Sept. 20-21 monetary policy review in the United States. The sell-off, however, continued despite the Federal Reserve refraining from hiking interest rates.
On Tuesday, foreign investors dropped shares amounting to P3.89 billion on the local bourse, P18.32 million over the P3.87 billion worth of securities they bought.
“[A]s the meeting dates drew near (Sept. 15-16), the bets have moved back to December. It had, at least over the near term, ceased to be a major influence,” noted Justino B. Calaycay, Jr., head of marketing and research at A&A Securities, Inc.
The foreign selloff was not triggered by the “mouth” of Mr. Duterte alone, although the president’s pronouncements definitely had impact on investor sentiment, Mr. Calaycay noted.
“Six of the top 10 biggest net foreign selling days at the equity market happened in September. All, except one came in the period following the declaration of a State of National Emergency, the ASEAN Summit and, of course, the recent pronouncements by the President.”
The political noise has reverberated in the foreign exchange market, partly sinking the peso to a seven-year low of P48.25 against the dollar on Monday.
The peso’s decline, in turn, spooked the equities market in a period, when investors await possible resolution to the oil price slump from the Sept. 26-28 meeting of the Organization of the Petroleum Exporting Countries in Algiers and decode imminent policy changes after the US elections,” AB Capital’s Mr. Felix said.
BDO Capital & Investment Corp. President Eduardo V. Francisco, however, downplayed the impact of political developments in the Philippines on the capital markets, saying investors rather took their cue from the presidential debate in the US.
The result of the US elections could usher in changes for the Philippines, with the Republican candidate discouraging American companies from outsourcing their operations, for instance, Mr. Francisco told reporters on the sidelines of the Philippines Investment Conference 2016 in Makati City on Tuesday.
Mining and oil stocks continued to lead the decline, losing 266.12 points or 2.44% to close at 10,628.34. Services, meanwhile, stumbled by 25.46 points or 1.68% to 1,490.46; financials by 20.04 points or 1.095% to 1,814.38; holding firms by 72.18 points or 0.95% to 7,515.59; property by 24.21 points or 0.71% to 3,374.23; and industrial by 71.94 points or 0.61% to 11,817.25.
Decliners trumped decliners, 147 to 51, while 40 names remained steady. Value turnover rose to P7.76 billion, after 1.64 billion issues exchanged hands, from the P7.22 billion recorded in the previous session.
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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