Tuesday, June 20, 2017

#PSEI Lags Behind Global Stocks Performs 

Unfortunately, the PH Stock market has been lagging behind when it comes to market price action as the PSEI even went negative on 6.20.17 after a day of recovery from the decline of the HOLDINGS sector. The reason for such was drawn from the OFW remittance report that saw a drop, as a substantial share of the PH GDP comes from OFW remittances.

As of June 20, 2017

PSEI even declined to the 7917 levels, contrary to the start of the week's trading reaching the 7950 resistance level where most traders managed to bring it back lower to where it is today. The same replica trading of drifting lower towards the close of the trading day, with Monday as a mere exception to the rule. The obvious down play of global stocks rally have been shrugged off with local protectionism from a continued inflow from foreign investments. Goldman Sachs have even called two of the major companies with a rating of buy, yet still underperformed such call with the market price ability to push for a rally in spite of the DOW's record levels @21500 then.

Although, today's timid price action have been attributed to a handful of block sales as seen on the PSE daily reports that gave investors outlook sluggish to say the least. However, it maybe for now markets sentiments points to growth in global stocks. PH Asian Investors should take their lead from what markets provide the best return for their buck.

Herewith is a comparative market analysis between price action from PH Holding firms, the PSE Index price performance and the PH Financials relative market movements for the day 6.20.17. Take note that certain 'chart patterns & technical divergences' have occurred between these index sectors compared with the PSEI. Watch the next price action as it draws the end of the 2nd quarter trading.

SMART Investors Do!

2 comments:

  1. On top of it all, now the USD has gained its strength back v. the PHP and is currently trading @50.22 to this writing. The initial effects of PHP weakness would reflect a price adjustment with the local stocks as it draws closer to the end of the 2nd quarter 2017.

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  2. With the end of the 2nd quarter the USDPHP has again showed its trend direction trading well at 50.55 and a session high at 50.72. Investors would now have to make necessary adjustments in protecting stock value of a weaker PHP.

    In such market scenario, PSEI would reflect record levels on the first two (2) weeks of the 3rd quarter when its relative price behavior would adjust to the rate differential of a weaker PHP. As companies with international exposure in debt financing would have to draw a fairly good balance between their stock valuation and earnings to compensate for the value lost in the foreign exchange rate.

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