9am Tuesday May 26, 2009
The PHP opened weaker at 47.23 from yesterday’s 47.17. There might be a North Korean missile flying around soon.
I was thinking that today might have been a good weather vane on the direction of the local stock market because Wall Street was on holiday last night for Memorial Day. The European major markets were mixed and not at all volatile with less than around 0.5% movement up or down in places. Unfortunately, the North Korean threat has brought jitters to the Asian markets this morning.
Fortunately, we’re not a target for those supersonic explosives which are supposed to be doing only an experimental bang. Unfortunately, when a bomb goes off, who knows where the pieces will fall. I think that the local market should open weaker simply because there is a reason to bank some profits. Yesterday, the Asian markets were showing weakness in early session as the Hang Seng Index traded in the red all morning. Nevertheless, it closed well in the black, up 59 pts. (+o.35%). The PSEi was up throughout yesterday’s trading day, so we can surmise that local optimism is still rather high.
Today, we’ll see what happens at the Meralco shareholders meeting and have a better picture of PLDT’s involvement in the power utility company. TEL has been trading sluggishly on anxiety about how the Meralco acquisition will play out. I am very constructive on TEL simply because earnings going forward will remain robust.
In my view, money management should never be abandoned by a prudent portfolio; after all, nobody loses money by taking a profit. Do not lose sight, however, of your horizon. Missiles may be flying around the skies, but when the smoke clears, remember the direction that we are headed in the next 18 months. My compass is pointing north.
Have a pleasant day.