Philippine Banking Sector: Haven't Excused from the Fangs of the Bear

The last two days on trading in the Philippine stock index said to be another turmoil. This is because it continues to crumble down of up to 5678.73 as the lowest points reached on yesterdays trading but regained to almost 5,800 at the closing. The PSEi (Philippine Stock Exchange index) is not only the one who is experiencing bearish sentiments.  The Thailand Index, China Shanghai Stock Index, the S&P and MSCI Emerging Market Index were among the heavily beaten Asian stock indexes yesterday. This is mainly due to the China money market tumult. Many others also showing double top or head and shoulder bears. As of 3PM today the local bourse regained more than 5.50% or 320 points more from yesterdays closing.

PHOTO: Manila, Philippines

In the Philippine setting, I would share some data on the banking sector according to sources I currently known.

The most declined bank stocks are:

    Stock Close High Decline
1. PBB 23.90 38.85 -38.48%   - Philippine Bank of Communications
2. PNB 77.50 116 -33.19%     - Philippine National Bank
3. SECB 140 202.2 -30.76%   - Security Bank

While the most resilient are:
1. UBP 128 153 -16.34%        - Union Bank of the Philippines
2. EW 28.6 36.40 -21.43%     - East West Banking Corp.
3. CHIB 60.1 77 -21.95%        - Chinabank  

For reference, the 3 biggest banks are:
1. BDO 77 99 -22.22%           - Banko De Oro Universal Bank
2. BPI 88 114 -22.81              - Bank of the Philippine Island
3. MBT 104 139.5 -25.45%     - Metopolitan Banking & Trust Corp.

The real investors sentiments to regain the local market losses must be supported by local and overseas trading participants in order to solidly support its status thereby allowing the bearish sentiments to fade. Hoping that today's upward motion of the market is not just a bubble effect.

Philippine Stock Market (PSEi) Suffer Losses for Two Days Now Since US Fed Announces Its Recent Economic Stimulus

At yesterdays market closing, the Philippine stock market is down 2.86% or 186.53 points off the other days closing of 6,513.20 points. Today as of this writing another 175 points down was being lost making the total index points 6,152 now or 2.77% from yesterdays market close. From this years peak of 7,403.65 points last May 15, 2013, it already entered the bear territory which was down on its highest low last June 13 into 6,114.08 or 17.41% points lost. 

With this data, I could bet that at this market level it was already oversold. What causes this one moth losses was;

     1. Market news sell down. This happens when the Philippine government announces that its first quarter GDP was up 7.8 percent more than the expectations of financial institutions. Investors anticipation of the better than expected economy standings have concluded the bullishness by the sell on news strategy even though better economic outlook is still intact. The foreign investors was the most sellers during this period of market sell down.

     2. US Federal Reserves plan to curve its bond buying in the later parts of this year signals almost all financial markets worldwide to sell their stock holdings. These indeed had urged most investors to exit or lighten up their positions in the stock market.

I am still holding some fundamentally stable stocks in my portfolio as this market scenario will rebound soon and at this market level it is an excellent shopping opportunity for highly battered stocks that have a good story. Great discount from the fear of market volatility. 

Philippines Bourse: A New Haven In Hot Investment Money

Its almost a year since my last post has been done.  One of the reason why I have stop posting on this blog is due to the closure of my google adsense account which according to them I have done invalid clicks to the ads posted in my blog. Some of my readers have missed my sharing of the current events taking place of the Philippine Stock Market during those time. What makes me start to reopen my blog is due to the availability of good internet signal in our place which took place in the later days last May this year. Not like before that broadband facilities is not good. By this time I decided to ride with the good opportunity that the internet world have made changes in our modern times.

From the time I stopped posted many events in the Philippine financial settings have took place. More especially that we are now considered as the top destination of hot investment money. One reason is the successive growth of the country's GDP. Another is the upgrading of the Philippine's status as an investment haven according to the grades facilitated by the topmost international credit rating agency Fitch Rating Agency and Standard and Poor's (S & P).

Here's some caption from the said upgrades:

"Philippine Credit Rating Raised to Investment Grade

Fitch Ratings has upgraded the credit rating of the Philippines to the investment grade status, a level which promises a surge if capital inflow from both local and foreign investors.
In a statement, the debt watcher said that it has raised the country's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BBB-' from 'BB+'. The Long-Term Local-Currency IDR has been upgraded to 'BBB' from 'BBB-'.
The Outlooks on both ratings are Stable. The agency has also upgraded the Country Ceiling to 'BBB' from 'BBB-' and the Short-Term Foreign-Currency IDR to 'F3' from 'B'.
http://www.president.gov.ph/daang_matuwid/philippines-credit-rating-raised-to-investment-grade/

A May 2, 2012, press release from the Bangko Sentral ng Pilipinas

The Philippine today received investment grade rating from international credit rating agency Standard& Poor's. In a statement released by the agency, the country's sovereign long-term foreign currency rating was upgraded from "BB+" to "BBB-" with stable outlook. This upgrade by S & P comes after the Philippine sovereign received its first investment grade rating from Fitch Ratings in March this year."
http://www.gov.ph/2013/05/02/phl-receives-investment-grade-rating-from-standard-poors/

With these scenario, local as well as foreign investors are keen to the existing and upcoming developments in the country especially in the government moves in enhancing the Philippine economy.

What's so disappointing is yesterday's move of the US Federal Reserve Banks chairman Mr. Ben S.Bernanke to curve its plan in buying bonds in the coming months until it will totally cease the said purchasing next year. This action have depressed not just the US stock market but also the entire international bourses.  More about this Federal Market Open Committee's (FOMC) meeting could be read at the link below. 

http://www.federalreserve.gov/newsevents/press/monetary/20130619a.htm