July 26 Philippine Stock Market Commentary
As admonished in our commentary last Friday, any earthshaking move in the US markets could fray sentiments of global bourses including ours. As of this writing, only THREE bourses are in the green and stands defiant to the bloodstained region and these are the indices of Singapore, Malaysia and India, whom are all incrementally higher.
In the domestic front, the foreign induced selling particularly on the Bank of the Philippine Islands (-3.61%) weighed on the benchmark index to close 15.96 points or 1.02% lower for the day, almost expunging the gains attained during the last two trading days of the previous week. Except for the lonesome winner among index heavyweights San Miguel ‘B’ (+.72%), 6 others including BPI posted declines while PLDT and San Miguel ‘A’ closed neutral. Metrobank suffered a similar outcome to that of BPI and was off a considerable 3.7%, followed by Ayala Corp and subsidiary Ayala Land down 1.85% respectively, SM Primeholdings lower by 1.72%, and Globe Telecoms lost .6%.
Local investors governed today’s activities as the share of its foreign counterparts to total turnover was only 45.67%. Telco issues as PLDT, Globe and PILTEL (-3.5%) were supported by foreign capital, as well as Ayala Corp, ABS-CBN Preferred (unchanged) and First Philippine Holdings (unchanged). Foreign money outflow from BPI accounted for 94.38% of its volume, and was evidently dragged down by the accelerated exodus by offshore portfolios. Moderate liquidations were seen in Meralco B (-1.75%), Philippine Stock Exchange (-15.12%), Petron (-5.08%), Metrobank, Filinvest land (unchanged) and SM Primeholdings.
Sentiment weighted towards the bears, as declining issues led advancing issues 39 to 22 and industry sub-indices save for the extractives were all in the red while foreign money acquired one company more than it sold. Issues traded remained above the 100 level at 101 but significantly lower than the past 7 sessions which traded above the 110 level. As the Prudent Investor pointed out earlier, investors are likely to hold on to declining issues than to sell them hence, in a declining market, the issues traded tends to ebb. Today’s action points towards these biases, although the prevailing optimistic outlook by local investors, based on the previous movements or ‘established trend’, still underpins the market sentiment. One day does not make a trend, but a collective series of daily moves.
Again all eyes should now center on the pivotal US markets as its recent downward moves have been conveying mixed messages about the sustainability of the US economy’s resilience, the market’s ambiguous reaction to the forthcoming monetary policy adjustments, the impacts of continuing higher oil prices on inflation, the unwinding of carry trades in anticipation of the ‘measured rate’ increases, the high volatility of the US dollar and the deceleration of China’s breakneck pace of growth. Stay tuned...
As admonished in our commentary last Friday, any earthshaking move in the US markets could fray sentiments of global bourses including ours. As of this writing, only THREE bourses are in the green and stands defiant to the bloodstained region and these are the indices of Singapore, Malaysia and India, whom are all incrementally higher.
In the domestic front, the foreign induced selling particularly on the Bank of the Philippine Islands (-3.61%) weighed on the benchmark index to close 15.96 points or 1.02% lower for the day, almost expunging the gains attained during the last two trading days of the previous week. Except for the lonesome winner among index heavyweights San Miguel ‘B’ (+.72%), 6 others including BPI posted declines while PLDT and San Miguel ‘A’ closed neutral. Metrobank suffered a similar outcome to that of BPI and was off a considerable 3.7%, followed by Ayala Corp and subsidiary Ayala Land down 1.85% respectively, SM Primeholdings lower by 1.72%, and Globe Telecoms lost .6%.
Local investors governed today’s activities as the share of its foreign counterparts to total turnover was only 45.67%. Telco issues as PLDT, Globe and PILTEL (-3.5%) were supported by foreign capital, as well as Ayala Corp, ABS-CBN Preferred (unchanged) and First Philippine Holdings (unchanged). Foreign money outflow from BPI accounted for 94.38% of its volume, and was evidently dragged down by the accelerated exodus by offshore portfolios. Moderate liquidations were seen in Meralco B (-1.75%), Philippine Stock Exchange (-15.12%), Petron (-5.08%), Metrobank, Filinvest land (unchanged) and SM Primeholdings.
Sentiment weighted towards the bears, as declining issues led advancing issues 39 to 22 and industry sub-indices save for the extractives were all in the red while foreign money acquired one company more than it sold. Issues traded remained above the 100 level at 101 but significantly lower than the past 7 sessions which traded above the 110 level. As the Prudent Investor pointed out earlier, investors are likely to hold on to declining issues than to sell them hence, in a declining market, the issues traded tends to ebb. Today’s action points towards these biases, although the prevailing optimistic outlook by local investors, based on the previous movements or ‘established trend’, still underpins the market sentiment. One day does not make a trend, but a collective series of daily moves.
Again all eyes should now center on the pivotal US markets as its recent downward moves have been conveying mixed messages about the sustainability of the US economy’s resilience, the market’s ambiguous reaction to the forthcoming monetary policy adjustments, the impacts of continuing higher oil prices on inflation, the unwinding of carry trades in anticipation of the ‘measured rate’ increases, the high volatility of the US dollar and the deceleration of China’s breakneck pace of growth. Stay tuned...
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