Since 2001, I've helped thousands of businesses and entrepreneurs from over 100 countries build and repair the online presence of their brands, products, and services. Please visit iPresence Business Solutions to learn more about my digital marketing business.
Since 2014, I've been helping thousands of Filipinos understand how stock investing works. Since 2014, I've been mentoring people on how to become an independent stock trader and investor through the Stock Signals Philippines.
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In a press release to the Exchange, Union Bank of the Philippines (UBP) disclosed a stellar increase in net income by 122%.Comparing its 9-month income from January to September, UBP booked a net income of P8.1 billion compared to last year’s P3.7 billion.
This increase was attributed to increased customer count through acquisitions. Total deposits increased to P364 billion from P290 billion a year ago. Loans increased to P222.1 billion from last year’s P164.2 billion, up almost 35%.
Interest income grew by P2.2 billion, while fees grew by another P400 million, which gives the bank an additional P2.6 billion pesos in recurring revenues. Securities sold also helped third-quarter results by supporting the bank loan’s growth strategy.
For the 9-month ended September 30, 2016, UBP’s annualized Return of Average Assets (ROAA) is at 2.4% while its Return on Average Equity (ROAE) stands at a remarkable 17.3%.
Detailed financial results for UBP is yet to be uploaded to the Exchange.
UBP shares closed at 74.5-apiece as of October 26, 2016, up by 30.70% year-to-date from its opening price of P57 per share.
On a technical standpoint, UBP seems to be forming a cup and handle which started on November 17, 2014. Volume spikes were noticed at mid-December of 2015 and early June this year. A break in the cups neckline may propel the stock to the P95 level.
Major support sits near 72.80 while the resistance hangs near 76.60. Zooming out this Daily Chart, you’ll see that midpoint support near 74.00. UBP has tested that line 7 times since October 4, 2016.
If UBP drops below 72.80, the next support is deep near 68-apiece.
If UBP pierces the resistance near 76.60, the next resistance awaits near 86.
When the price moves above the 10SMA and MACD crosses above the signal line, I may take that as a buy signal.
Know that UBP is moving below the 10SMA and MACD has crossed below the signal line.
But don’t take my word for it. Trading decisions are personal. What’s a buy signal for me could be a sell signal for you and vice versa. Besides, I used the verb “may” and not “will”. Not because one of my indicators say that it’s a buy or sell, it doesn’t mean I will buy or sell right away. My indicators are not standalone indicators. I got to see a confirmation of what the other indicator is saying through my other indicators such as the Top 10 Players’ sentiment or Price-Volume Distribution chart.
Top 10 Players
Participants with a 100% Buying and Selling Activity from Oct-03-2016 to Oct-26-2016 at 03:30PM:
- 10 out of 60 participants or 16.67% of all participants registered a 100% BUYING activity
- 26 out of 60 participants or 43.33% of all participants registered a 100% SELLING activity
- Top 10 Players’ Buying Average: 75.1354
- Top 10 Players’ Selling Average: 75.2014
Foreign Fund Flow
On a 30-day trading period, UBP is on a Net Foreign Buying worth PHP30,495,197.00.
UBP has a low risk level based on my proprietary calculator of risk levels.
Volume must register a volume higher than its 30-day volume average for it to have a stronger upward momentum.
What Can You Say About This Report?
I do hope I was able to help you through my analysis and simplified interpretation of data. Always have a trailing stop-loss to preserve your capital and to protect your gains.
Please let me know your thoughts by commenting below.