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Got A Question For YOU - Is this Good or Bad News: Philippine Stock Index Seen Testing 7,500 Level

Before you answer that question, let me share this with you, please read... I got this from my Philippine Stock Market mentor's newsletter...

 "A friend, new to the stock market, asked me, “Bo, I just wish that the stock market would just up on a smooth, straight line. Wouldn’t that be better?” I shook my head. “It’s during those sudden dips that your money multiplies.” 

Older TrulyRichClub members—those who’ve been surfing the wild waves of the stock market for at least two years—know this. Now, they love the dips. The dips are what make them really happy." 

So what happened when the stock goes up, the tendency is to wait until it hits the selling price. Isn't that easy? Then when it hits the target mark, that's when you separate the men from the boys. The sad part again is the waiting and idling time because of looking forward for another bargain deal - times when everything goes up is not really the most happy part. 

Stock index seen testing 7,500 level

The bellwether Philippine Stock Exchange index is expected to test the 7,500-point level in this week’s shortened trading period, after the market’s strong finish last week.

BDO Unibank Inc. chief investment strategist Jonathan Ravelas said the PSEi’s performance last week indicated that a possible breakout was under way.

“A close above 7,450 could put the 7,800/8,000 levels to a test. These levels mark the 500- point consolidation of the index between the 6,880/7,414 levels from September-December 2014,” Ravelas said.

Analysts, however, said investors might also begin to take profits, following the strong surge to an all-time high this week. This week’s trading period will cover only three days, after the PSE said the equities market would be closed on Jan. 15, 16 and 19 during the papal visit.

“Nevertheless, the shortened trading week should keep most investors at bay, watching for potential market-moving news. Sentiment towards the local equities market should still be positive, though investors may react to upcoming US economic data, particularly the unemployment rate and non-farm payrolls report,” BPI Asset Management said.

The PSEi gained 2.4 percent over last week’s trading period to close at 7,402.72 on Friday, while the all-share index gained 1.7 percent to 4,336.90.  The benchmark index has been on a roll since late December, as the country is expected to benefit from the falling crude prices and after credit rating agencies upgraded the country’s debt rating again.

Except for the financials sub-index, which declined by 0.6 percent, all major sub-indices ended higher last week, led by holding firms, which rose 4.7 percent; property index, which went up 3.1 percent; and mining and oil, which advanced 2.2 percent.

Foreign investors were net sellers last week by P351 million, as total foreign selling reached P24.649 billion while total foreign buying amounted to P24.297 billion.

Average trading value climbed to P10.3 billion from previous week’s average of P8.44 billion.

Top gainers last week were Island Information & Technology Inc., which gained 49.1 percent to P0.455; Makati Finance Corp., which jumped 48.4 percent to P4.20; and Philweb Corp., which rose 32.1 percent to P12.88.

Top losers were STI Education Systems Holdings Inc., which fell 13.1 percent to P0.66 over management dispute; Petron Corp., which dipped by 9.9 percent to P9.55 on continued drop in world oil prices; and Philippine H2O Ventures Corp., which dropped by 8.2 percent to P4.45.

Source: manilastandardtoday.com

Stocks seen taking a breather

Local stocks are expected to take a breather in the three-day trading week after rallying to a record high despite slumping markets overseas.

Analysts said the market is bound to consolidate this week given the long holiday to coincide with Pope Francis visit from Jan. 15 to 19.

However, they are also not discarding the possibility of ano-ther all time high especially as local modds may be uplifted days leading to the Papal visit.

“While the short-term charts now show a bullish picture driven by the 10-day rally, the long-term, monthly charts still suggest some weakness. Both time horizons in fact suggest that the PSEi is deep into overbought territory,” Accord Capital Equities Corp. analyst Justino Calaycay Jr. said.

The Philippine stock market impressed many analysts and observers last week as it defied the weakness shown in US and Asian markets in the first few days of the trading week. 

“Despite Wall Street’s gyration however, we laud the local market’s overall response, as several fund managers seized on any hint of weakness to buy,” F. Yap investment analyst Jason Escartin said.

“Gauges were off to a good start for 2015, despite volatile trades in US equities during the holidays.  Buyers prevailed, especially after the Fed minutes showed officials are unlikely to raise US interest rates before late April.  Talks were also up that $1.1 billion infrastructure projects in China might be accelerated this year, to boost growth,” Escartin said.

The local benchmark index pulled off a strong finish last week by setting a new high at 7,402.72.

Week-on-week, the PSEi gained 2.4 percent or 172 points as turnover improved 37 percent to P9.4 billion on average.

“While we welcome this kind of start by the market for the 2015 trading calendar, we are not prepared to water down our call for caution given the developing long-term picture. Investors are well advised to take advantage of the present positive volatility, if and when it extends to next week,” Calaycay said.

“But the call to never compromise risk-management is equally important. A 10-day rally is bound to snap and one would not want to be caught holding the bag — again, not when the long term picture isn’t as rosy as it was in previous years,” he added.

Source: philstar.com/business

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PS.  YOU, yes YOU! Just in case you have not read this yet, Read this now... 21 Reasons and Benefits Why I SUBSCRIBED To The Truly Rich Club and Why YOU Should Too  a lot of people also commented on this review, you can read their comments too. Thanks and God bless.

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