Monday, December 24, 2012

BSP eyes measures to curb peso climb

Buy more Philippine Pesos???

BSP eyes measures to curb peso climb


The Bangko Sentral ng Pilipinas said 2013 could be a challenging year as far as preventing an even steeper appreciation of the peso was concerned, noting that a potential investment grade credit-rating for the country could drive more foreign portfolio investments.
Admitting it was actively buying dollars from the market in 2012 to temper what could have been a sharper appreciation of the local currency, the BSP said it expected the need for more action to keep the peso as less volatile as possible next year.
“Capital flows from a [potential] credit-rating upgrade will provide more challenge in terms of keeping the peso relatively stable and minimizing its volatility,” BSP Deputy Governor Diwa Guinigundo told reporters Friday.
In 2012, the peso appreciated against the dollar by more than 6 percent partly on account of significant inflows of foreign “hot money.” After hovering in the 43-to-a-dollar territory at the start of the year, the peso broke into the 40:$1 level before weakening to the 41:$1 band.
Market analysts said the Philippines, together with a few other emerging Asian countries, has become a preferred destination choice for portfolio investments given its favorable economic growth amid the general weakness of the global economy.
The BSP said foreign portfolio investments could grow further in 2013, thereby providing additional appreciation pressures on the peso.
All three major international credit-rating firms—Fitch Ratings, Standard & Poor’s and Moody’s Investors Service—now rate the Philippines a notch below investment grade following rating upgrades over the past two years.
The credit watchdogs cited the Philippine government’s declining debt burden, rising foreign exchange reserves and robust economic growth as among the factors for the upgrade.
“Without the BSP’s participation in the foreign exchange market, the peso could have been firmer, although we had to allow fundamentals to determine the peso-dollar rate,” Guinigundo added.
He reiterated the central bank’s exchange-rate policy of allowing the peso to appreciate specially if such movement was driven by “structural flows,” which included foreign direct investments and remittances. The BSP, however, said it would temper the rise of the peso if this was due to foreign portfolio investments, particularly those that involve speculation on the peso.
To temper the rise of the peso in 2012, the BSP engaged in heavier dollar purchases that pushed its expenditures and led to its losses. In the first three quarters of the year, the central bank had a net loss of P68.36 billion.
The BSP likewise slapped a higher capital requirement on banks’ holdings of non-deliverable forwards (NDFs), which were supposedly hedging instruments for importers and exporters but were believed to be used to earn from currency speculation.
The BSP also re-issued an old directive prohibiting banks from using money of foreigners from being invested in the central bank’s special deposit accounts (SDAs).
A joint research by First Metro Investment Corp. and the University of Asia and the Pacific said that after a 100-basis point cut in key interest rates in 2012, further rate cuts by the BSP could not be ruled out in the coming year alongside other measures to manage capital flows.

Stocks continue rally

A news article from: Doris C. Dumlao of 

Stocks continue rally

LOCAL stocks extended their gains for a fourth session Friday, bucking a regional downturn on the back of a positive credit-rating outlook by Standard & Poor’s and some yearend window-dressing.
The main-share Philippine Stock Exchange index gained 26.2 points or 0.45 percent to close at 5,823.94. The index hit a high of 5,860.12 in intraday trade—very close to the all-time intraday peak of 5,866.83—but pared down gains instead of breaking into new highs.
“Being the last day before Christmas, this is truly a Santa Claus rally. Now I look forward to the January effect,” said Gus Cosio, president of mutual fund management firm First Metro Asset Management Inc.
The local market shrugged off regional concerns over a stalled budget deal that would have addressed the US’ fiscal cliff by year’s end. Without such a deal, a series of mandated tax increases and spending cuts could push the United States to another recession.
The day’s biggest gainers were JG Summit (+3.16 percent), SM Prime (+2.23 percent), Metrobank (+2.06 percent), DMCI (+2 percent), SMIC (+1.83 percent), Belle (+1.67 percent) and  PLDT
(+1.18 percent). BDO, BPI and ICTSI also contributed to the day’s gains.
The day’s most actively traded stock was Atok-Big Wedge, which rose by 31.74 percent.  Atok disclosed that it had sold 180 million shares to offshore equity funds, boosting its public float to 10.05 percent and thereby meeting the minimum requirement for continuing listing on the Philippine Stock Exchange.
On the other hand, there was profit-taking on Ayala Land, Ayala Corp., Globe, EDC, MPI, AEV and AP. Among the second-liners, Vista Land and Puregold also closed lower. Doris C. Dumlao

Thursday, September 27, 2012

Back to Blog? or Promising Brother!

First and foremost: Sorry

I recently checked:

 I was surprised that I was not able to view the posts.

 It seems that one of the "gadgets" was blocking readers in reading the blog.

 At this time, I have made it my goal to make this blog leaner and more informative than ever.

I chanced upon the opportunity to look again into my blog to review the books that we considered as the bible in understanding technical analysis: Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance) - John J. Murphy

You can purchase this book in Amazon via the link provided (left column)

I tried to look for the book again as my 19 year old brother got interested in diving into stock trading.

I started talking to him passionately about technical analysis and in time got a little bit nostalgic and sentimental about my personal history in trading Philippine stocks.

My brother currently searches the web for any and all information on trading stocks, I guess with the same hunger I felt back in the days when stock trading was seemingly only for presidents and wealthy men.  Those were the days when BPI trade seemed like the best choice to pursue online trading.  I found it quite funny that my 19 year old tech savvy brother seemed to think that as well: If you wanted to trade online then BPI trade is the bomb!

I think you should try BPI trade to really know if its the bomb! I personally tried it... the long lines and the long trades...

I gave my brother the best advice I got from one of my mentors: Bonner Dytoc

Try to learn technical analysis from Absolute Traders:

Best advice ever!