Speculative stocks tend to rise whenever the PSE index falls and when share prices of blue-chip stocks go up, speculative trading tends to become less active.
This inverse relationship has never been more negative lately when the market started to fall from a record high in January. The number of traded dormant stocks, mostly negatively correlated to PSEi, rose to 26 percent from 19 percent last year.
Read more: http://business.inquirer.net/247263/making-sense-speculative-stock-hysteria#ixzz596rIpx31
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