Oct 28 Philippine Stock Market Daily Review: Awesome Foreign Support
As we enter into the final phase of statistically weak October, we are now witnessing a vigorous rebound spurred by foreign money. The Phisix surged for the second straight session up by a considerable 33.15 points or 1.87% as portfolio investments from overseas money dictated on today’s activities. Foreign money accounted for 59% of today’s output while foreign inflows registered P 176.454 million or about 19% of the day’s aggregate turnover. These positive developments come in the light of the mostly upbeat Asian bourse with the Philippine as the third best gainer in the region following South Korea’s Kospi and Hong Kong’s Hang Seng Index.
In the most recent past while the local bears bashed the Phisix to its one and a half month low we have noted that foreign money continued to buoy the property heavyweights. Today, aside from the recovering market leaders led by key telecom issues, PLDT (+2.54%) and Globe (+1.44%), the property heavyweights represented by its index (+.7%) have provided the flanking support to the foreign bulls. Meanwhile the sanguine sentiment by overseas investors buying has likewise filtered to the Banking Issues, net foreign buying to the banking issues totaled P 26.457 million or about 15% of the day’s foreign buying activities with 5 of the 13 most liquid banking issues accounting for a positive inflow against two that posted outflows.
Looking at the main components of the Phisix, only two of the eight Phisix heavyweights recorded net foreign sales, namely Metrobank (unchanged) and San Miguel B (unchanged) while the rest were receptacles to overseas portfolio investments and closed mostly higher, specifically Ayala Corp (+3.17%), Ayala Land (+2.85%) and Bank of the Philippines Islands (+2.17%). Only SM Prime (-2.59%) seems to be the outlier defying the current bullish sentiment today while being defiantly bullish when the market was sold down.
I would also like to particularly point out that Banco De Oro (+1.13%), which of late had posted large cross trades, has seemingly been the object of foreign accumulations. The Henry Sy owned Banco De Oro whose stock languished since its IPO (still trading below IPO price of P 20.5) could possibly be the next target by foreign investors maybe due to its aggressive corporate maneuvers to expand its market share through mergers and acquisitions. A breakout from its IPO price could possibly indicate for a buy.
Finally, definitely the euphonious blathers by our media grandstanding colleagues would probably say that today’s positive action has been triggered by the massive rally in the US financial markets and the steep correction in oil prices, while they may be partially true I stand to say the current rally is part and parcel to the unfolding cyclical shifts, historical patterns, seasonal strength and a vibrant technical picture which represents the underlying psychological positive shift of mostly foreign investors to the Philippine equity assets, as well as, macro development undergirding such paradigm shift. Local investors, as usual, being outrightly fickle and of the speculative propensities have always been the laggards. A case in point is Philippine Realty up 50% today and 400% over the week. According to the PSE, Phil Realty is "undergoing judicial proceedings for corporate rehabilitation" (read: to sell assets to pay off debts). Nice recovery huh.
As we enter into the final phase of statistically weak October, we are now witnessing a vigorous rebound spurred by foreign money. The Phisix surged for the second straight session up by a considerable 33.15 points or 1.87% as portfolio investments from overseas money dictated on today’s activities. Foreign money accounted for 59% of today’s output while foreign inflows registered P 176.454 million or about 19% of the day’s aggregate turnover. These positive developments come in the light of the mostly upbeat Asian bourse with the Philippine as the third best gainer in the region following South Korea’s Kospi and Hong Kong’s Hang Seng Index.
In the most recent past while the local bears bashed the Phisix to its one and a half month low we have noted that foreign money continued to buoy the property heavyweights. Today, aside from the recovering market leaders led by key telecom issues, PLDT (+2.54%) and Globe (+1.44%), the property heavyweights represented by its index (+.7%) have provided the flanking support to the foreign bulls. Meanwhile the sanguine sentiment by overseas investors buying has likewise filtered to the Banking Issues, net foreign buying to the banking issues totaled P 26.457 million or about 15% of the day’s foreign buying activities with 5 of the 13 most liquid banking issues accounting for a positive inflow against two that posted outflows.
Looking at the main components of the Phisix, only two of the eight Phisix heavyweights recorded net foreign sales, namely Metrobank (unchanged) and San Miguel B (unchanged) while the rest were receptacles to overseas portfolio investments and closed mostly higher, specifically Ayala Corp (+3.17%), Ayala Land (+2.85%) and Bank of the Philippines Islands (+2.17%). Only SM Prime (-2.59%) seems to be the outlier defying the current bullish sentiment today while being defiantly bullish when the market was sold down.
I would also like to particularly point out that Banco De Oro (+1.13%), which of late had posted large cross trades, has seemingly been the object of foreign accumulations. The Henry Sy owned Banco De Oro whose stock languished since its IPO (still trading below IPO price of P 20.5) could possibly be the next target by foreign investors maybe due to its aggressive corporate maneuvers to expand its market share through mergers and acquisitions. A breakout from its IPO price could possibly indicate for a buy.
Finally, definitely the euphonious blathers by our media grandstanding colleagues would probably say that today’s positive action has been triggered by the massive rally in the US financial markets and the steep correction in oil prices, while they may be partially true I stand to say the current rally is part and parcel to the unfolding cyclical shifts, historical patterns, seasonal strength and a vibrant technical picture which represents the underlying psychological positive shift of mostly foreign investors to the Philippine equity assets, as well as, macro development undergirding such paradigm shift. Local investors, as usual, being outrightly fickle and of the speculative propensities have always been the laggards. A case in point is Philippine Realty up 50% today and 400% over the week. According to the PSE, Phil Realty is "undergoing judicial proceedings for corporate rehabilitation" (read: to sell assets to pay off debts). Nice recovery huh.
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