Cautiously optimistic on the $PSEi as negative macro headwinds continue to be priced in. See our take on recent FY22 earnings $MER $MPI $FB and $ACEN.
And try to guess our blind item :)
https://t.co/quh7BWZZIp
BSP raised rates today by 50bps to 6%, in line with estimates. This came after higher inflation in Jan
We believe this will provide support to the Peso, which recently broke above 55.20 mark. This supports our view that the rally will be faded with lower high around 55.6 to 56.4
PSEi set to rebalance within the week, expect huge volume this Friday.
Note that the $MEG and $RLC deletion may already have been priced in as the they have underperformed the mkt by 24.17% and 12.55% respectively from their end Sept 2022 close.
$TEL closed down 19.3% to Php1,192/sh on almost Php1.5Bil. Can’t remember the last time an index heavyweight traded like this. Will be watching this stock closely over the next few trading days.
$TEL now 16.4% to Php1,235/sh. Note that the Php48Bil in question represents 15% of TEL’s mkt cap from yday close. Let’s hope TEL can find a bottom at these levels, or this sell off can further drive $PSEi lower.
$TEL fell by 4% to Php1478/sh. This sell-off came before the telco publicly announced that they had uncovered over Php48Bil worth of undocumented purchase orders from 2019-22.
Be cautious in trading the bounce on TEL as sentiment on the stock could remain negative medium term.
Bad news for stocks. Although the Fed’s 50 bps rate hike was widely expected, the dot plot’s implied peak rate increased to 5.1% next year as Fed chairman Powell said they still have some ways to go.
US inflation number out later 9:30pm. Consensus expecting 7.3%, down from 7.7% in October. Hoping for a good print tonight to fuel a Christmas rally to end the year. Expecting blue chips to continue leading the way should mkt react to a positive print.
The more you trade,
The more you realize that the hard part is being patient, disciplined, overcoming failures, executing over and over for 5-10 years.
Expected Nov MSCI Rebal: $CNVRG out, $GTCAP $MPI at risk
These stocks' free float mkt caps are below the average ~$717Mil of recent deletions.
For computation, MSCI randomly selects the closing price from the last 10 days of Oct in computing mkt cap for the Nov rebal.
@jamestiutiu Highest chance to be included would be $UBP with est. FIF mkt cap at USD960Mil, followed by $SCC at USD705Mil and $DMC at USD608Mil.
Note that $CNVRG was the lowest in recent memory to get included at USD1.1Bil