The PSEi continues its downward beat pulled down by an anemic investor interest, as indicated in the worsening anemia in value turnover at P4.63 billion from yesterday's P5.85 billion, and from last Wednesday's P9.98 billion, the highest level this year. The PSEi change rate, on its 3rd day, also behaved like the four-day down ward behavior last week.
Moreover, Gainers finally gives in to the overwhelming Lossers, 55-106.
Most stocks behaved with uncertainties, and continued within a well-defined channel where they had stayed in a week or so. Some though already experienced gathering disfavor, such as Metro Pacific Investments Inc (MPI), Filinvest Development Corporation (FDC) and Alsons Consolidated Resources (ACR). Still a few managed to take on a new high (e.g. Allied Global Group Inc, AGI) or simply growing patiently (e.g. San Miguel Corporation, SMC).
ANALYSIS
The market tomorrow has an 80% chance of continuing its downtrend if the value turnover does not improve to the P9.0 billion level. And, although the market in general continues to be overvalued, another downturn tomorrow is expected to already pull down the prices of many stocks, back towards more fair levels.
RECOMMENDATION
Review your prospect lists for potential buys tomorrow if the market goes down once more. There is a good chance that a few of these may already be around 10% premium or below. Still traders may find a few opportunities to sell stocks intended for short-term trading. Long-term investors may found more value for value for their money; although no so much as in bear markets.
It is still not a bear market though.
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