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[av_heading heading=’Foreign capital returns to the PH stock market after selling spree’ tag=’h3′ style=’blockquote modern-quote’ size=” subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=”]
By Jed Jaleco Del Rosario
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Sunday, February 19, 2017
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ILOILO City – Although the market remained relatively calm this week, it also saw the reversal of a multi-day foreign selling spree. This reversal came when foreign investors invested substantial new capital into the Philippine stock market on Thursday.
“For the past eight days, the market has been on a foreign selling spree,” technical analyst Hernan Segovia of Summit Securities said, but stated that this multi-day trend reversed on Thursday when foreign investors invested hundreds of millions worth of new capital into the Philippine stock market, causing a sudden upswing in the Philippine stock index.
Segovia added that the inflow of new foreign capital was particularly helpful for companies that belonged to the casino and gaming sectors.
Despite this positive change, Segovia described the market this week as “boring,” stating that most investors are still waiting for new catalysts to help them choose new stocks.
Nevertheless, Segovia also pointed out that the new inflow of foreign capital may trigger a new, positive trend for the market, but only if it continues in the foreseeable future.
“It’s quite positive for the market. Any inflows for the markets means that investors have gained confidence in our market,” Segovia said.
However, he also cautioned local investors to temper optimism with a little caution.
“You see, sometimes it’s [sudden inflow of foreign capital] quite distorted,” Segovia said. “We are clueless as to what the foreign investors actually want from our markets.”/PN
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