July 23 Philippine Stock Market Commentary
The foreign driven major telecom issues PLDT (+1.61%) and Globe Telecoms (+1.85%) shoved the Philippine composite benchmark into positive territory in generally mixed trading activities on the last day of the week. The Phisix advanced .41% or 6.43 points on a light volume turnover of P 332.894 million as the rest of the major cap index issues closed unchanged.
Reflecting yesterday’s trend, the Phisix defied the generally glum outlook in the Asian region despite Wall Street’s slight uptick with ONLY three of the 15-benchmark indices trading higher as of this writing.
Select buying from overseas investors accounted for P 22.733 million of net capital flows into the market with foreign activities share to total output increasing to 53.1%, the FIRST in 8 sessions where foreign money accounted for the MAJORITY of the trades.
On the broader market, decliners walloped advancers 33 to 23 with 61 issues unchanged, major sub-indices were mostly higher except for the MINING and ALL index and foreigners sold more issues than bought them despite the recorded POSITIVE capital flows, hence the MIXED sentiment.
Once again these activities reflects tempered and selective acquisitions by foreigners as the locals were mostly on a profit-taking mood after bouts of speculative rotations within the market.
Overall, yesterday’s bounce off the 50-day moving averages coupled with today’s gains should provide a sufficient traction for the market to move higher in the following sessions. The incremental growth of foreign activities relative to total output seems to be gaining traction and is a SINE QUA NON stimulus for the advances among the heavyweights, ergo the composite index, and of course, finally, this comes in the backdrop of a bullish local sentiment underscored by traded issues still exceeding the 100-level benchmark. Again these observations and prognosis are BASED PURELY on market internals and sentiment indicators.
On the risk side, with the US markets on the brink of testing its MAJOR support levels after ploughing below their 200-day moving averages, any declines of SHEER amplitude enough to jolt global bourses would definitely leak over the local bourse and preclude any rebound.
The foreign driven major telecom issues PLDT (+1.61%) and Globe Telecoms (+1.85%) shoved the Philippine composite benchmark into positive territory in generally mixed trading activities on the last day of the week. The Phisix advanced .41% or 6.43 points on a light volume turnover of P 332.894 million as the rest of the major cap index issues closed unchanged.
Reflecting yesterday’s trend, the Phisix defied the generally glum outlook in the Asian region despite Wall Street’s slight uptick with ONLY three of the 15-benchmark indices trading higher as of this writing.
Select buying from overseas investors accounted for P 22.733 million of net capital flows into the market with foreign activities share to total output increasing to 53.1%, the FIRST in 8 sessions where foreign money accounted for the MAJORITY of the trades.
On the broader market, decliners walloped advancers 33 to 23 with 61 issues unchanged, major sub-indices were mostly higher except for the MINING and ALL index and foreigners sold more issues than bought them despite the recorded POSITIVE capital flows, hence the MIXED sentiment.
Once again these activities reflects tempered and selective acquisitions by foreigners as the locals were mostly on a profit-taking mood after bouts of speculative rotations within the market.
Overall, yesterday’s bounce off the 50-day moving averages coupled with today’s gains should provide a sufficient traction for the market to move higher in the following sessions. The incremental growth of foreign activities relative to total output seems to be gaining traction and is a SINE QUA NON stimulus for the advances among the heavyweights, ergo the composite index, and of course, finally, this comes in the backdrop of a bullish local sentiment underscored by traded issues still exceeding the 100-level benchmark. Again these observations and prognosis are BASED PURELY on market internals and sentiment indicators.
On the risk side, with the US markets on the brink of testing its MAJOR support levels after ploughing below their 200-day moving averages, any declines of SHEER amplitude enough to jolt global bourses would definitely leak over the local bourse and preclude any rebound.
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