July 19 Philippine Stock Market Commentary

July 19 Philippine Stock Market Commentary
 
A MIXED Picture marks today’s trading activities as foreign investors sold BLUE CHIPS down while local investors bolstered the BROADER market.
 
THE Phisix fell 6.97 points or .45% as index heavyweights led by the telecom issues weighed on the benchmark index on light volume of P 352.046 million (US$6.29 million).  FOUR index heavyweights declined namely, PLDT down .84%, Globe Telecoms lower 1.24%, SM Primeholdings slipped 1.69% and BPI dropped 1.19% against the only heavyweight gainer Ayala Land up 1.88%.  San Miguel Local and Foreign shares and Metrobank were unchanged for the day.
 
Of the 9 issues that comprises more than 75% of the Phisix, San Miguel foreign or B shares, Bank of the Philippine Islands and Metrobank failed to make the top 20 most traded issues, while 5 out of the 8 heavyweights reported net foreign outflows against Ayala Land, BPI and Ayala Corp that posted foreign buying.
 
Net foreign activity accounted for 49.63% of today’s output while foreign money flows recorded a net outflow which totaled P 10.844 million.  Foreign money sold more issues than they acquired.
 
On the other hand, market breadth was mixed as advancers pounced on decliners 46 to 24 while the sub-indices manifested mostly declines as only the OIL and PROPERTY index defied the bearish bias.
 
For the SIXTH consecutive session foreign capital flows have been on the NEGATIVE side of the trade which means that foreigners have been SELLING local equities in TEPID volume and has substantially been REDUCING their participation as evidenced by the FOURTH straight session where foreign money’s share of trade accounted for LESS than FIFTY percent.
 
AVERAGE Trade per share has fallen below the P 160,000 for the THIRD session, the last of which occurred during mid MAY of 2003 when the Market was at the root of last year’s BOOM.  This reflects that RETAIL INVESTORS NOW DOMINATE the market, hence the LOW Volume of KEY heavyweights and the NEGATIVE showing of the sub-indices.  The 112 issues traded today represents the FIFTH straight session and the 21st in 22 sessions since June 18th ABOVE 100-benchmark which shows that local investors have been pushing up THIRD TIER issues.
 
Take a look at today’s major winners, the top ten according to the citiseconline.com, are Jardine Davies** (+49.3%), Fil Hispano** (+46.18%), MRC Allied** (+40%), Macroasia Corp (+25.28%), Philippine Telephone and Telegraph (+21.73%), House of Investments** (+21.62%), Alcorn Petroleum (+20%), Southeast Asian Cement (+15%), Ever-Gotesco Resources (+14.81%) and DM Consunji (+13.69%), all of the above can be classified as third liners.
 
** volume below P 200,000.
 
Looking at the region, as of this writing only the South Korean Bourse has made a major upside move while the rest of ASIA are likewise trading MIXED. SEVEN of the 15 bourses are lower and except for the KOSPI, the rest of the region does not have more than a 1% move in either direction.  In other words the REGIONAL BOURSES like the Philippines are undergoing CONSOLIDATION.