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.
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