Vs. #PHP Weakness Vs. #USD Strength
Investors and traders have somehow been unaware of the unexpected & sudden decline of the PSE Index of Stocks to 7146 levels at the closing of March 10, 2017. Selling pressure emerged near the end of the session sending the PSEI to its lowest level nearly two (2) months in the making with an estimate of around 3.73 billion shares worth P7.38 billion traded, with losers obviously out-maneuvered gainers at the closing bell.
Philippine Holdings As of March 10, 2017
While monitoring an Overlay chart of the PH Holdings which have led the decline as illustrated on the chart figure above and closed at the 7088 levels. Foreign outflows have been consistent despite of the short-lived comeback which drove stock prices higher prior to the decline. The decline was led by JGS (74.00, -2.44%) and SM (599.00, -9.24%) For now, one can only assume that these companies would have a substantial price effect with the continued weakness of the PHP relative to the US Dollar. And the relative correlation of the much anticipated interest rate hike in the US by the coming week's trading which can leave an open window for stocks to move lower by then.
These types of market conditions are quite difficult to navigate either on a technical perspective nor a fundamental stand point. It is advisable to stay focused on PRICE ACTION and MARKET BEHAVIOR because corporate
ReplyDeletestrategist would do whatever it takes to protect stock gains and preserve corporate stock valuation.
Such declines were made contrary to a rising channel. Which constitutes a major correction within a major trend direction is quite healthy.
ReplyDeleteSMC have done their corporate strategies way ahead of the market as their recent M&A in Australia have provided them the International exposure, greater valuation, an expanded revenue stream and a strategic hedge for the PHP weakness and interest rate hike in the US and more importantly against negative market contagion.
ReplyDeleteOn SM decline: As of 3.13-15.17
ReplyDeletePSEI PRICE ACTION: It is well worth taking notice that the PSEI price range has been established from its rally since January 2017. This range is set at a high of 7402 and a low at 7120 levels for the past 9 consecutive weeks now. Rebalancing the PSEI due to EMP exit to give way for other stocks expense is another story as JGS and SM were two of the major stocks that declined. There's more than meets the eye.
And today's closing at 7258 is well within a mid-range that signals a resilient market. Where it breaks to the North side of the chart is indeed a welcome treat; as individual stocks with a few exceptions has been in a cradle swing at the lower band of their respective price take off points.
PH Stock Market Volatility Finally Emerges
ReplyDeleteRebalancing or Price Adjustment or Just A Sophisticated Market Play Book
https://plus.google.com/+JSTAlexander/posts/M9Xa6Z4rzGq?_utm_source=199-1-1
This information was published on March 11, 2017 before two consecutive declines and today's decline is no exception. Investor Traders would have covered such stock prices decline by protecting their overall investment from a declining PHP and stock price value. Due Diligence is a MUST. Play the market smart & learn the proper strategies before moves like today occur. The information contained runs between March 11 -to- 27, 2017.
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