There are Smart Choices to be made!
It has been quite a grueling four (4) months since the Philippine Stock Market Index(PSEI) peaked at 9078 at the end of January 2018. And have reached a dramatic low at 7499 which can be considered as the initial base for now. As the two (2) recently encouraging price recovery have lost steam while ending the week of May 18 closing at the levels of 7672.
The market's ability to make a decent enough follow through after weighting adjustments made on the indices, and partly influenced by the positive sentiments of US equities price action then wasn't enough to build momentum as foreign outflows still dominated the end of the trading week.
This was not really a surprise, as the market's behavior on the price recovery most often fizzles out and even pares its gains while drifting much lower from where prices came from. While most PH analyst have conveyed that inflation factors, high cost of local fuel along side consumer goods and services have creep-up. As the recent rate hike of the BSP have finally came through, as an economic policy responsiveness for higher inflation figures.
Although, other mix reports continuously states sound and solid fundamentals for the Philippines is stable with the recent positive credit rating approval received. True enough, but the up & down turns are part and partial of the growing pains for the market from the numerous share right offerings - SRO, government bonds, foreign outflows, and new corporate bonds offerings in the list.
Investing & Trading by CORRELATION is the way to ADAPT in this type of market conditions with utmost SUCCESS! . . . Sir Alexander
For now, with the absence of the 'Short-selling' program that the PSE have yet to get the final ok of the SEC regulatory body, traders and investors alike would have to contend themselves until such time that it does get its approval.
ReplyDeleteThus there really has a strategic need for investors to be as tactical and be able to have the ability to arbitrage in different markets that could at least to level off the trading field in the market place.
Megatrade101 Price Update as of 5.21.18
ReplyDelete#US Dollar Index #DXY #ICE
Currency Index in USD
93.87 +0.210 (+0.22%)
#USDJPY (SPOT) Foreign Exchange Rate
CCY Currency in #USD vs #JPY
111.35 +0.576 (+0.52%)
#Nikkei225 #FUTURES Index (#NKDM18 #CME)
CME Currency in #USD
23040.00 +190.00 (+0.83%)
#Nikkei225 #TOPIX (N225)
Currency in #JPY
23028.55 +100.19 (+0.53%)
PSEi INDEX (PSEI.PS)
Philippine Currency in PHP
7,700.79 +28.51 (+0.37%)
iShares MSCI Philippines ETF (EPHE)
NYSE Arca Price. Currency in USD
32.91 -0.17 (-0.51%)
#CBOE #InterestRate 10 Year (#TNX)
ReplyDeleteChicago Options Currency in #USD
3.07 -0.04 (-1.35%)
#DOW Futures CBOT #USDollar Index #DXY #ICE
Currency in USD Currency Index in USD
24947.00 +226.00 (+0.91%) 93.90 +0.239 (+0.26%)
Easing #US #China Trade Tensions Boosts #Stocks, #USD can have a Positive Sentiment effects which can spill over to Asian trading, with a couple of exceptions.
ReplyDeleteStaying on course with the USD, NK225, USDJPY, USDCHF & a careful watch on price action. We'll still take this move with a much lesser grain of salt and a glass half full on the rise :)
Turning to be a 'Wash-out' for the PSEI as of 5.23.18 pm session as it followed its own bearish sentiment ignored the previous triple digit rally of the US equities.
ReplyDeleteThe PSEI is back at 7517 low while pushing individual underlying stocks to record levels where price imbalance is well recognized on the decline. And retail PH investors / traders are simply on the look out as prices continue to decline. Very limited choices, indeed! Sad but true!