PSEI opening levels were encouraging enough but not sustainable at the closing prices of the market. Ending @7232 with an exception backing the afternoon trend, as (San Miguel Corp) SMC recovered from a pm session low @105.00 while closing @106.90 as an example. Mining / Oil, Financials and services sectors were the main indices that gained while the rest of the sectors drifted back lower.
Although, incremental net price changes in some stock picks is reflective of resiliency as these prices are doing market self-adjustments especially coming to the month's close and repositioning towards opening of the third new month of March to complete the first quarter of the 2017. A total of USD80M consecutive Foreign outflows from the PH stock market have dented the possibility for a faster return to price recovery, on top of the continuing weakness of the PHP exchange rate above the 50.00 weigh heavy on market prices.
Thus constituting a 'Triple-Whammy' of portfolio value loss for investors. Indeed, without the Foreign direct stock trading investors it would take a longer period of time for the PSEI to recover back above the 8100 levels. The psychology of Foreign investors market outflow should weigh at the same time be clearly understood why it has been withdrawing for the past 8 consecutive times since mid-2016. The presence of the Divergent Trend is well defined.
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With the US Major Indices making record highs, would it be nicer if and only if the PSEI can do at least a fraction more from where it is now! US-Asian / PH Investors have taken the lead. Step-up into global trading standards and learn how to take advantage of these market movements especially for PH main-street investors / traders.
ReplyDeleteLet's watch how PSEI reacts to a Triple Digit Advance or would we still witness an extended Divergent Trend again? Remember it doesn't have to be that way.