Now that the #PSEI have broken through the three (3) psychological barrier price resistance level of 8000 mark, the angle and momentum of acceleration of prices that we have expected have finally came into fruition that registered a record high at 8299.
The three (3) day rapid surged was met initially with profit-taking orders and liquidation in general that led to a strong pullback down to where it came from. Speculative positions by short-term local retail investors & traders alike were obviously been stopped out of the sudden decline prompting the index to close lower from their intra day highs.
A normal case of a market squeeze where institutional, broker / dealers and professional traders has enabled bargain hunting through these lower prices as we have likewise done so. Reading through the market's behavior has proven well effectively knowing that such a comeback scenario towards the recent highs would also carry a higher probability. Similar case has also been identified with the US Major indices. The so called "Market Shake-out"
For now the re-surging price action of the local bourse gaining back from its footing is currently at the 8285 mid-price from a session break before resuming its course. A daily and end of the week's trading session for a decent corrective move would not be discounted as it has been the norm for most market participants, but the overall market sentiments would still remain.
Meanwhile, the Financial sector were actually the first to lead in the market and lost steam at the mid-year level several factors leading to its decline. With a neutral to stable stance on FINANCIAL for now, it is trailing the HOLDING FIRMS price action followed by PROPERTY and INDUSTRIALS. Although, Mining and OIL had indeed provided a hand from their recent recovery as US and global metals and Oil prices have been on the rise since the US Dollar maintains its weakness for sometime now. But it is expected to have a good chance of recovery after the FOMC's hawkish tone for rate hikes until 2018 was reported.
Another week until the end of the third quarter period of 2017, that we would have a much better read on prices. The prevailing sentiments would continue for the PH stock market until such time that there would be external forces changing this. And as an encouragement the #PSEI just marked a new record high at 8299 as of this writing. As the PH Stock market draws to a close for another half hour there has been a lot of 'Block Sales' from industry sector participants' that has decided to cash in their profitable positions. Too tempting for institutional account managers not to take advantage of the market's surge as the #PSEI is currently at 8311 from a pm session high at 8321.
"We are long-term bullish and have an overweight position on Philippine stocks". A growing reputation for business process outsourcing and tourism, along with rising domestic spending and a large working-age population, make the country “a natural choice” for investment.
ReplyDeleteArthur Kwong, Head of Asia Pacific equities at BNP Paribas Asset Management.