First Metro Asset Management Inc

Diversifying divergence, by Gus Cosio

4:30pm Tuesday 22 November 2011

Philippine stock investors should be pleased with today’s market behavior.  New York was down 248.85 points or 2.11 percent, but PSEi had gone down only 9.72 points today or a mere 0.23 percent. Nevertheless, at one point in the trading day the index tanked 39 points which makes the recovery at the close more dramatic.  Indeed local stocks have displayed not just resiliency but buoyancy as well.

Some stocks are just unsinkable; EDC, MPI, JFC, MER, SM, PX, MWC, SMC, AP, GLO SMDC, FGEN – these were all up today.  What is going on?  Why are we not getting beaten up like the developed markets?  Looking at the region, the KOSPI, Bangkok, Jakarta and Mumbai are also bucking the trend in the U.S. and Europe.  I guess there is till a lot of money sloshing around the world, and they are not in a hurry to go back to developed markets.  Ironically, trickles of cash have been finding their way to smaller markets such as the Philippines. Read more

Driving domestically, by Gus Cosio

7:55 pm  Thursday  10 Novemebr 2011
 
Philippine stocks were down today, but looking back as far as Thursday last week when the local stock index closed at 4210.25, I do not think that we are in bad shape.  We could be trading in a range between 4210 and 4350 which is not so bad.  The DJIA seems to be trading in a range between 11800 and 12200.  Both indices are in a short term range of around 3.3%.  What appears interesting to me is that in both markets, investors look to be bottom fishing whenever bad news come out of Europe.  I think many are focusing their buy strategies on bottom up strategies, i.e. looking at fundamentals of individual stocks rather than the broad market.  This is but likely because 75% of companies in the S&P 500 reported results which were better than expected.  Furthermore, while the U.S. economy is not roaring ahead, it is not at all slipping but merely chugging along.  The latest 3Q-2011 GDP growth estimate was 2.5% – not very strong, but not so weak either. Read more

High anxiety, by Gus Cosio

8:50am  Thursday  3 November 2011

Let us put things in perspective.  The DJIA fell 276 points ending below 12,000 on the last day of the month in a very rough month’s close.  Nevertheless, U.S. stocks ended its best month in a decade with an almost uninterrupted four-week rally as Europe appeared to have finally found a way out of its debt crisis.  The DJIA and S&P 500 closed at their lows of the year on Oct. 3 after a bloody summer with the market tanking 20 percent from its most recent peak.  October saw extreme volatility and despite the dismal Month-end, it was exceptional month for Wall Street with DJIA up 1,041 points, or 9.54 percent –  the largest monthly points gain in DJIA history.  With the largest monthly percentage gain since October 2002, the index ended a five-month losing streak and is up 3.3 percent.  Similarly, the S&P 500  rose 10.8 percent for the month, the best since December 1991.  Stronger corporate earnings from the likes Google, Caterpillar, Qualcomm, and McDonald’s and  favorable economic indicators such retail sales rose 1.1 percent in September, the biggest gain in seven months. Read more

High anxiety, by Gus Cosio

8:50am  Thursday  3 November 2011

Let us put things in perspective.  The DJIA fell 276 points ending below 12,000 on the last day of the month in a very rough month’s close.  Nevertheless, U.S. stocks ended its best month in a decade with an almost uninterrupted four-week rally as Europe appeared to have finally found a way out of its debt crisis.  The DJIA and S&P 500 closed at their lows of the year on Oct. 3 after a bloody summer with the market tanking 20 percent from its most recent peak.  October saw extreme volatility and despite the dismal Month-end, it was exceptional month for Wall Street with DJIA up 1,041 points, or 9.54 percent –  the largest monthly points gain in DJIA history.  With the largest monthly percentage gain since October 2002, the index ended a five-month losing streak and is up 3.3 percent.  Similarly, the S&P 500  rose 10.8 percent for the month, the best since December 1991.  Stronger corporate earnings from the likes Google, Caterpillar, Qualcomm, and McDonald’s and  favorable economic indicators such retail sales rose 1.1 percent in September, the biggest gain in seven months. Read more

First Metro Asset Management Inc