August 9 Philippine Stock Market Commentary
The depressed sentiment arising from the steep weekend drop of Wall Street was initially carried over to the Philippine market at the start of the opening bell. However, underlying bullish sentiment by local investors took this as an opportunity to accumulate on the broader market and caused the market to close marginally higher by .09% or 1.36 points.
Among the key heavyweights, PLDT (-.39%) and Property heavyweights Ayala Land (-1.75%) and SM Prime (-1.66%) weighed on the Phisix while Ayala Corp (+1.88%), San Miguel A (+.9%) and San Miguel B (+.73%) lifted the index to its slightly positive showing today. Globe Telecoms, and Banking heavyweights BPI and Metrobank were neutral.
Incidentally, the market cap weightings of the eight blue chips relative to the composite index have substantially been reduced, where once they constituted more than 75% of the composite, today these 8 issues have seen the broader sector of the Phisix gaining momentum hence the decline of their share to only 70%. Put differently, local investors have bought up the other components of the Phisix, whose growth has steadily outpaced that of the heavyweights, resulting to the recent dilution of the share of the heavyweights vis-à-vis the Phisix.
Mr. Market’s mood today was mixed with bullish inclination. While foreign money’s share to output was once again a significant majority (61.41% to accrued output), net foreign capital flow recorded a meager outflow of P 5.885 million on considerable liquidations in BPI, SM Prime and Meralco. However, advancing issues outnumbered declining issues 43 to 27 for a difference of 16, the most in 6 sessions, an obvious mending of Mr. Market’s underlying psychology in the wake of the other week's foreign instigated panic-selloff in the Lopez owned energy companies which almost brought down the house. Moreover, industry sub-indices were mostly up with only the Property and All index down.
Like our market, the Asian region is, as of this writing, trading mixed and looks least affected by Friday’s carnage in New York.
With the continuing bullish underpinnings manifested by the market internals, any positive news or even a no news at all could spark an opportunity for aggressive buying on the broader market by the locals. Hence, barring a market crash in Wall Street or an explosion from a Nuclear suitcase bomb in any part of the world, it looks as if the momentum for the domestic market is tilted in favor of the bulls.
The depressed sentiment arising from the steep weekend drop of Wall Street was initially carried over to the Philippine market at the start of the opening bell. However, underlying bullish sentiment by local investors took this as an opportunity to accumulate on the broader market and caused the market to close marginally higher by .09% or 1.36 points.
Among the key heavyweights, PLDT (-.39%) and Property heavyweights Ayala Land (-1.75%) and SM Prime (-1.66%) weighed on the Phisix while Ayala Corp (+1.88%), San Miguel A (+.9%) and San Miguel B (+.73%) lifted the index to its slightly positive showing today. Globe Telecoms, and Banking heavyweights BPI and Metrobank were neutral.
Incidentally, the market cap weightings of the eight blue chips relative to the composite index have substantially been reduced, where once they constituted more than 75% of the composite, today these 8 issues have seen the broader sector of the Phisix gaining momentum hence the decline of their share to only 70%. Put differently, local investors have bought up the other components of the Phisix, whose growth has steadily outpaced that of the heavyweights, resulting to the recent dilution of the share of the heavyweights vis-à-vis the Phisix.
Mr. Market’s mood today was mixed with bullish inclination. While foreign money’s share to output was once again a significant majority (61.41% to accrued output), net foreign capital flow recorded a meager outflow of P 5.885 million on considerable liquidations in BPI, SM Prime and Meralco. However, advancing issues outnumbered declining issues 43 to 27 for a difference of 16, the most in 6 sessions, an obvious mending of Mr. Market’s underlying psychology in the wake of the other week's foreign instigated panic-selloff in the Lopez owned energy companies which almost brought down the house. Moreover, industry sub-indices were mostly up with only the Property and All index down.
Like our market, the Asian region is, as of this writing, trading mixed and looks least affected by Friday’s carnage in New York.
With the continuing bullish underpinnings manifested by the market internals, any positive news or even a no news at all could spark an opportunity for aggressive buying on the broader market by the locals. Hence, barring a market crash in Wall Street or an explosion from a Nuclear suitcase bomb in any part of the world, it looks as if the momentum for the domestic market is tilted in favor of the bulls.
Hi, readers! =)
ReplyDeleteIf you’re interested to invest in the Philippine stock market, you can also check the Philippine Stock Exchange’s Market Education website: www.pseacademy.com.ph
Thanks!