6:00pm Monday 29 June 2009 PSEi – 2468.05 (-0.378%)
As expected, there was nothing to drive prices higher. The market is very rational at this point. The stocks that moved a tick higher were those that are in the lower region of their trading range. Those that have become expensive as a result of the 2 month run are taking a rest and slipping a tick down. The enthusiasm that we had seen over the last 2 months is not noticeable for the time being. The thing about times like these is that it tends to make people really inclined to take profits.
Markets in the region appear to have taken the same mood with the Hang Seng down 0.39% while the Nikkei lost 0.95%. Singapore hardly moved (-0.03%) and Jakarta similarly slipping (-0.39%). Thailand was pretty strong rising by ).95% and Shanghai being the strongest rose 1.61%. The mood looks mixed at this point which to me highlights the notion that the markets will be approaching some sideways movements.
It’s not going to be exiting at all for the next few days for the markets as a whole. If New York tanks, we could be in for some trouble in the near term. Better to keep our powders dry. I would recommend more profit taking now. If I see rallies, I would sell into it. One thing is for sure, we will need to do serious work on our portfolios.
Time for some brow beating in the next few days.