First Metro Asset Management Inc

In local hands by Gus Cosio

3:50 pm  Tuesday 26 July 2011

When I posted an order on my online account at www.firstmetrosec.com.ph, I noticed that there was a new button -GTW.  I wondered what it was, so I called customer service.  I learned that it was a facility that I had been waiting for.  GTW apparently stands for “GOOD TILL WEEK” or your order will be on queue until it is filled for 7 trading days.  I was hoping for a good till cancelled facility; and lo and behold, it is now available.  Now, I can go out of town and leave my sell or buy orders at trigger prices.  This is wonderful particularly because I am going out of town this week to attend the ASEAN Stock Exchanges Networking Conference. Read more

Back to the boards by Gus Cosio

2:30 pm  Monday  25 July 2011

I imagine that a lot of nervousness hovered above Philippine stocks when we opened this morning.  Surely, having broken out of 4320 previous high of the PSEi in early July and again seeing strong support last week at 4350, there must be a lot of bullishness out there.  Following from a very credible wave of net foreign buying, over the past 2 weeks, there must be some inner confidence left in the sentiments of local traders and investors. Read more

Riding the herd by Gus Cosio

6:20 pm Tuesday 19 July 2011

If you look at the top 10 stocks on value traded today, except for PWR, all are fundamentally sound stocks. The Philippine stock market is showing a life of its own. The U.S. and European markets were down overnight, and the region was pretty mixed during the day. Yet the PSEi was pretty firm all day with just a small dip which people saw as a buying opportunity. Read more

Keeping an eye by Gus Cosio

7:22 pm  Monday  18 July 2011

Another strong day in Philippine stocks.  This time, another bank stole the limelight – BDO.  I did mention in an earlier blog that the banks may be worth a look.  I think people are positioning for a good earnings report, but that is an old story altogether.  We had been saying that for a couple of weeks already.  It seems that the regional markets are diverging a bit.  The Shanghai Composite, the Hang Seng and the Singapore STI are down slightly while the PSEi, Jakarta and the Nikkei are up.  On a global view, I think there is differentiation going on in as far as strong and weak economies are concerned.  For the weak, it is not anymore a matter of growth rates, but a matter of how well a country’s financial system can preserve asset values and prices. Read more

I wouldn’t turn blue by Gus Cosio

12 noon  Saturday  16 July 2011

On Friday, July 15,  MSCI Asia Pacific Index added less than 0.1 percent, but the PSEi went up by 0.8% or 35.19 points.  What is significant is that the index close of  4,458.74 is the highest close in history.  Certainly, the bull market looks to be intact, and what gives us encouragement is that this present price movement looks to be fundamentally led.  With above average value turnover at Php 6.1 billion, this to me signals a renewed wave of enthusiasm.  I hope investors and traders will remain involved in this market with eyes wide open so that we can fully this bull cycle which had its beginnings in March 2009.  A New York research firm likens the current global market to the 1982 to 1987 rally.  If those guys are correct, the global equities market is still below the halfway mark of a 500% increase from the base.  Maybe I am too much of an optimist, but our economy’s momentum and uninvested wealth stock is too strong to ignore. Read more

Looking forward for better connection by Gus Cosio

7:00pm  Thursday  14 July 2011

Today, we saw the Philippine stock market trade up very strongly in the first half hour.  A few index heavyweights were leading the market such as MBT, DMC, BDO, ICT and even MER.  My take on such a move is that investors are positioning for earnings report of these companies because there are early indications that good results should be coming in.  I am particularly keen on some of the holding companies which are looking quite rosy.   Of course, DMC continues to be a favorite, and I am quite pleased that it looks like it is breaking out.  SM which always seems to be a laggard is so cheap that I am hopeful that after its earnings report comes out, it too, can break out.  Of course, AC has been underpinned by its own buy back program; and while I see good support for AC, I doubt if we can see any spectacular move on this stock.  I think I’d rather bet on ALI which has a higher beta. Read more

The Economic Weather Report Third Quarter 2011 Outlook and Forecasts by Metrobank Research Department

The Philippine economy posted a slower first quarter growth of 4.9% form 8.4%. GDP computation was revised to reflect 2000 prices from the previous 1985 prices. The growth was underpinned by increased in investment spending, solid consumer spending, rebou8nd in agri sector and solid performance of the industry sectors.

Click the banner to view and to download the lastest Economic Weather Report

Italy, Gold and Metals by Gus Cosio

7:35 pm Tuesday 12 July 2011

Having come back from such an enjoyable beach sortie, it is very hard to get work started, especially since the broad market looks to be taking a beating. It was all red today in the most actively traded stocks list. Of the top 30 stocks on value turnover, only LC/LCB, MWC, MA and PWR traded higher while BDO remained unchanged. This time, it is the negative foreign factors that drove people to sell. The situation in Greece has revealed the weakness in Italy’s fiscal position, hence threatening its ability to refinance existing government debt. The problem is that Italy is the third largest economy in Europe behind Germany and France. It’s total debt amounts to Eur 1.6 trillion which is more than two and a half times the combined debt of Greece, Portugal and Ireland. Read more

Mining, in a beach? by Gus Cosio

2:50 pm   Monday   11 July 2011

I decided to take Monday off, so I am in a beach in La Union with my wife watching my son and his wife surf.  Actually, my wife and I are looking after the baby while they surf with a friend who is in town from Vancouver.  She wanted to check out the surfing scene in the Philippines.  The good thing about being in the beach on a Monday is that there is nobody here but us.  The other good thing is that even if I am in a provincial town 300 kilometers from Manila, I can still follow the market through the power of the Internet. Read more

Like Vic says by Gus Cosio

10:33 Wednesday   6 July 2011

I want to share some notes on inflation coming from a close associate, Dr. Vic Abola of the UA&P. Vic is unlike many Filipino economists who ignore free market.  He has been a financial market follower for many years, and in my opinion, gives more useful insights to economic releases. Read more

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First Metro Asset Management Inc