September 29 Philippine Stock Market Daily Review
Profit taking Continues
If news confounds ordinary investors based on the causal relationships between events to market activities, particularly to that of record crude oil prices, yesterday and today’s contrasting demeanor of the financial markets in Wall Street and Asia is a perfect example. Yesterday, Bloomberg attributed New York’s decline, as well as Asia’s to High Oil price jitters, today, it seems that Energy issues represented by oil boosted most of the major bourses from its pathetic performances for the past sessions. According to Edgar Ortega of the Bloomberg, “Energy shares are the best performers among the S&P 500's 10 industry groups this year amid surging crude prices. The index of oil producers, drillers and refiners has jumped 24 percent in the period, compared with a decline of 0.2 percent in the S&P 500. Technology and consumer shares declined amid concern higher energy costs will crimp profit growth…An index of metal miners and chemicals producers in the S&P 500 climbed 2.2 percent, for the biggest gain among the benchmark's 24 industry groups.” So which is which, high oil prices hurts stocks or high oil provides better earnings for oil producers hence good for stocks? Go Figure.
Well the rising commodities seen in Oil, energy and metals have buoyed energy and mining issues in the US, Europe and in Asia. However, in the Philippines, the ‘no-brainer’ investment received a no-brainer response from the speculative proclivities of domestic investors mesmerized by hype and spin tall tales among the punter’s favorite issues. The Oil issues in fact, represented by its OIL index was sold down today (HAHAHAHAHA!!!) and is THE Largest Decliner among industry indices while the MINING index was hardly changed. Wow such incredible myopia!!!
The Phisix fell for the second session to close 3.99 points down or .23%. It looks as if the locals shifted their profit taking activities to some blue chips as Bank of the Philippine Islands (–1.08%) and Ayala Land (-3.07%), both of whom were supported by foreign buying, and San Miguel A. Meanwhile, Ayala Corp was the sole blue chip expended by foreign money as the Ayala parent firm dropped 1.63%.
Foreign money remained bullish and in control of the market commanding about 56.39% of today’s turnover with a net positive inflow to the market amounting to P 150.467 million or about 19% of the day’s output with most of these inflows directed to SM Primeholdings (unchanged). On the broad market, foreign capital acquired 11 more issues than it sold meaning the foreign investors were still bullish, acquiring stocks on most blue chips as well as in the broad market. Although, the general sentiment as reflected by the advance decline differentials remained in favor of the bears, by 42 to 28 while industry indices were mostly down except for the Mining and Commercial Industrial, largely lifted by Globe Telecoms up 1.88%. The second tier issues of the Phisix or our punter’s favorites, namely Metro Pacific (+3.7%%), Digitel (+4.81%), DM Consunji (+1.94%) and Filinvest Land (+1.73%), cushioned the drop of the Phisix indicative of an easing profit taking moves by local investors.
Going into the last trading session of the week as well as the last trading days of the month we may expect some action to pick up as local investors seemed to have eased on selling (and may reverse) while foreign money continues to support the market.
Profit taking Continues
If news confounds ordinary investors based on the causal relationships between events to market activities, particularly to that of record crude oil prices, yesterday and today’s contrasting demeanor of the financial markets in Wall Street and Asia is a perfect example. Yesterday, Bloomberg attributed New York’s decline, as well as Asia’s to High Oil price jitters, today, it seems that Energy issues represented by oil boosted most of the major bourses from its pathetic performances for the past sessions. According to Edgar Ortega of the Bloomberg, “Energy shares are the best performers among the S&P 500's 10 industry groups this year amid surging crude prices. The index of oil producers, drillers and refiners has jumped 24 percent in the period, compared with a decline of 0.2 percent in the S&P 500. Technology and consumer shares declined amid concern higher energy costs will crimp profit growth…An index of metal miners and chemicals producers in the S&P 500 climbed 2.2 percent, for the biggest gain among the benchmark's 24 industry groups.” So which is which, high oil prices hurts stocks or high oil provides better earnings for oil producers hence good for stocks? Go Figure.
Well the rising commodities seen in Oil, energy and metals have buoyed energy and mining issues in the US, Europe and in Asia. However, in the Philippines, the ‘no-brainer’ investment received a no-brainer response from the speculative proclivities of domestic investors mesmerized by hype and spin tall tales among the punter’s favorite issues. The Oil issues in fact, represented by its OIL index was sold down today (HAHAHAHAHA!!!) and is THE Largest Decliner among industry indices while the MINING index was hardly changed. Wow such incredible myopia!!!
The Phisix fell for the second session to close 3.99 points down or .23%. It looks as if the locals shifted their profit taking activities to some blue chips as Bank of the Philippine Islands (–1.08%) and Ayala Land (-3.07%), both of whom were supported by foreign buying, and San Miguel A. Meanwhile, Ayala Corp was the sole blue chip expended by foreign money as the Ayala parent firm dropped 1.63%.
Foreign money remained bullish and in control of the market commanding about 56.39% of today’s turnover with a net positive inflow to the market amounting to P 150.467 million or about 19% of the day’s output with most of these inflows directed to SM Primeholdings (unchanged). On the broad market, foreign capital acquired 11 more issues than it sold meaning the foreign investors were still bullish, acquiring stocks on most blue chips as well as in the broad market. Although, the general sentiment as reflected by the advance decline differentials remained in favor of the bears, by 42 to 28 while industry indices were mostly down except for the Mining and Commercial Industrial, largely lifted by Globe Telecoms up 1.88%. The second tier issues of the Phisix or our punter’s favorites, namely Metro Pacific (+3.7%%), Digitel (+4.81%), DM Consunji (+1.94%) and Filinvest Land (+1.73%), cushioned the drop of the Phisix indicative of an easing profit taking moves by local investors.
Going into the last trading session of the week as well as the last trading days of the month we may expect some action to pick up as local investors seemed to have eased on selling (and may reverse) while foreign money continues to support the market.
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