September 14 Philippine Stock Market Daily Review: Finally, the Pause.
The much awaited correction finally came into being, as the Phisix fell by 41.17 points or 2.34%, and is Asia’s outlier (with most bourses up) and worst performer. The Phisix has moved independently from its neighboring bourses since last week’s stellar performance and today’s decline is nothing more than a cyclical correction from an interim overheated market. The correction phase is expected to continue in the coming sessions with probable intermittent bounces in between. Our target or buying windows are at the 1,684 (38.2% fibonnacci retracement) and 1,657 (50% retracement) levels. Moreover we expect the broader market to signal signs of recovery first coupled with the subdued intensity of selloffs. The advance-decline differentials have experienced a deterioration for the past two sessions and paved way for today’s massive correction.
Naturally being in a corrective mode, the ambient signs of profit taking was evident; declining issues whacked advancing issues by more than 3 to 1, industry sub-indices were mostly in the red led by the Commercial and Industrial (-2.56%), Property (-2.34%), Banking and Finance (-.94%), and Oil Index (-1.2%) while the Mining Index (+.33%) and ALL shares (+.41%) defied the bearish landscape. Moreover, foreign money who dominated today’s activities was slightly bearish and registered net outflow of P 7.375 million with marginally more companies sold than bought by overseas investors.
In the past 2 sessions too, aside from the deteriorating pattern of the market breadth, noticeably foreign participation in the market has once reverted to foreign money’s dictates, meaning that local investors were already in a profit taking mood since the past two sessions with only foreign money coming into the bearish stance today!! In other words, foreign money lagged the locals.
Although what seems to be enlightening is that like any classic correction after an episode of buying orgies, is that today’s correction comes in a sharply reduced volume.
Finally, as your analyst previously forecasted the market is poised for a strong last quarter run, based on seasonal strength, historical ‘new administration honeymoon’ patterns, cyclical shift and lastly a bullish technical picture. Any further retracements to the abovementioned levels are buying windows that would enable us to position for the highly probable yearend run.
The much awaited correction finally came into being, as the Phisix fell by 41.17 points or 2.34%, and is Asia’s outlier (with most bourses up) and worst performer. The Phisix has moved independently from its neighboring bourses since last week’s stellar performance and today’s decline is nothing more than a cyclical correction from an interim overheated market. The correction phase is expected to continue in the coming sessions with probable intermittent bounces in between. Our target or buying windows are at the 1,684 (38.2% fibonnacci retracement) and 1,657 (50% retracement) levels. Moreover we expect the broader market to signal signs of recovery first coupled with the subdued intensity of selloffs. The advance-decline differentials have experienced a deterioration for the past two sessions and paved way for today’s massive correction.
Naturally being in a corrective mode, the ambient signs of profit taking was evident; declining issues whacked advancing issues by more than 3 to 1, industry sub-indices were mostly in the red led by the Commercial and Industrial (-2.56%), Property (-2.34%), Banking and Finance (-.94%), and Oil Index (-1.2%) while the Mining Index (+.33%) and ALL shares (+.41%) defied the bearish landscape. Moreover, foreign money who dominated today’s activities was slightly bearish and registered net outflow of P 7.375 million with marginally more companies sold than bought by overseas investors.
In the past 2 sessions too, aside from the deteriorating pattern of the market breadth, noticeably foreign participation in the market has once reverted to foreign money’s dictates, meaning that local investors were already in a profit taking mood since the past two sessions with only foreign money coming into the bearish stance today!! In other words, foreign money lagged the locals.
Although what seems to be enlightening is that like any classic correction after an episode of buying orgies, is that today’s correction comes in a sharply reduced volume.
Finally, as your analyst previously forecasted the market is poised for a strong last quarter run, based on seasonal strength, historical ‘new administration honeymoon’ patterns, cyclical shift and lastly a bullish technical picture. Any further retracements to the abovementioned levels are buying windows that would enable us to position for the highly probable yearend run.
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