In order to propel the Philippine benchmark, the Phisix, to a desired higher level, one trick is for a sustained intensive intraday push on one of the index heavyweight issue in order to send the index up, and then hope that such optimism will spread and create a "rising tide lifts all boats" effect.
Well this has been much of the story for today, Friday February 28th, except that instead of one thruster, today's action has been mainly from two engines: a fantastic session end majestic upside nudge from what seems as “marking the close” on Ayala Land and Jollibee Foods.
Two sectors played practically the leading role for today’s gains: the property (2.43%) and the industrials (1.6%).
Well here are the intraday charts...
The property sector has been the dominant intraday leader. Led by Ayala Land, the property sector provided the inspiration and hope for the bulls with significant gains through the trading day.
However at the closing bell, what seems as a retracing property index reversed coursed and suddenly skyrocketed. The property index closed the trading day at session highs (charts from Colfinancials unless indicated)
The more astounding performance came from the industrial sector.
The industrial sector had modest gains in the morning, picked up speed in the afternoon and exploded during the last minute. Given that JFC is the second most weighted issue in the industrial index after URC, the massive push on JFC spiked both the Industrial index and the Phisix
The amazing feat by the property-industrial sectors prompted a breathtaking 25 point (.38%) end of the session swing in the Phisix.
Of the most active issues traded today, aside from ALI and JFC, Robinsons Retail holdings also jumped by 4.95%. Unfortunately the latter hasn’t been part of the Phisix composite.
Obviously today’s run plays into what the public mistakenly sees as a consumption boom.
Above is the stunning intraday chart of ALI. As noted above, ALI functioned as the index leader or driver for the PSE today.
At the day’s close ALI’s weightings relative to the Phisix basket has jumped to 8.03%, third to leader PLDT and next to shopping mall giant SM.
JFC conspicuously played the supporting role. JFC's chart exhibits an incredible last minute dash.
Today’s data (including data for the week) seem to fit into my latest observation where we seem to seeing an interim retail inspired euphoria
What's so special about February 28th?
It seems a bizarre coincidence that February 28 today and the same date of last year shared a similar what appears as "marking the close".
As today, last year the Phisix shot to the moon during the close to score a 1.59% advance. But unlike today, last year's nick of the time rally covered a broader ground.
Yet both episodes are signs of a classic mania in progress.
In 2013, a week after the Feb 28th "mark the close", the Phisix endured a 6% correction before recovering to reach May record highs. Sadly, the 7,400 May honeymoon record highs was to be cut short by Abenomics-Taper.
Given the recent acceleration of gains I doubt if we won’t see any substantial retracement next week.
I will expound on this on the weekend.
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