News / Philippine Stock Market

PSEi Outlook For Sept. 17, 2008 By Bonner Dytoc September 17, 2008

Now we know how it feels to be a victim of the mob’s ire. That is exactly how it feels as the PSEi has dropped 224.40 points in just two days. Nearly 10% was lost as our index followed the trend of all other global markets including the US market.

As we can see from our chart, our index followed the momentum of the DJIA the previous night as US index dropped 504 points, one of the worst trading days since 9/11. In our case, our momentum confirmed the double top formation that broke the other day as the index broke the neckline at 2618. This break of the neckline was pointing down to 2470. But today, we did much worse than that as the index closed at 2421.72. Net foreign buying was worth Php747M against net foreign selling of Php1.726B. Definitely, the foreigners were pulling out their money in all markets.

And the worst part is that the drop in the market isn’t over yet, the MACD lines are saying so as the momentum is clearly downward.