Stocks in New York had touched their 2008 highs before pulling back. Nevertheless, both DJIA and S&P 500 were up on the week with the latter performing better. This tells me that global investors are diversifying out of blue chips which led the beginning of 2012 rally. Locally, while the PSEi reached its all time high on Thursday, many traders and fund managers saw it as an opportunity to consolidate positions and take some money out of the table. Many were anticipating that the PSEi would hit 5,000 soon, and when it almost did, people proceeded with what they were planning on doing – take profits.
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There are so many questions on people’s minds today with the PSEi trading as high as 4997.04 and closing at 4893.48. The swing for the day was around 104 points or a 2.2 percent swing up and down. Just as when people thought the market would assault the 5,000 barrier, the market not only took back the day’s gain but even eroded a good part of yesterday’s. I think that many technical traders saw 5,000 as a nearby resistance to this rally that had its roots around November 2011 when the index was around 4,200. Read more
Yesterday, European finance ministers reached an agreement for an aid package for Greece that includes a 53.5 percent write-down for investors in Greek debt but shields Central Bank lenders from haircuts. The deal brings to at least 386 billion euros the sums spent or committed to save Greece, Ireland and Portugal from bankruptcy, and to insulate Europe from financial disaster. Asian stock markets were mixed today, but most European markets are down as I write. It seems that the Europeans are selling on news.
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The Philippine Stock Exchange Index (PSEi) traded at the all time high today after what seemed to be an all time high already last Friday. We seem to be moving farther and farther into uncharted territory as far as the Philippine equities market is concerned. The big question on people’s minds is will this rally continue or will we be up for a major correction. Investors always get wary when stock prices begin to trade at levels seen before.
8:45 am Monday 13 Feb 2012
After seeing a string of weeks where we had nothing but net foreign buying in Philippine stocks, we had net foreign selling last week. I think such a development is very healthy for our market as profit taking or consolidation has the effect of strengthening the base of the market which would allow it to move to the next level. there is nothing that tells me that the general bullish sentiment in the market is waning. As a matter of fact, the strong close after some weakness during the morning session tells us that some of those that did their selling earlier in the week or the previous week may be re-establishing positions. The top index gainers last Friday were MEG (4.4%), SMPH (4.08%), AGI (3.09%), BPI (2.94%) and RLC (1.94%). The biggest index losers were URC (-3.43%), SM -(3.2%), AP (-2.17%), SMC (-1.11%) and JFC (-0.9%). I think the composition of this list merely confirms that people are re-positioning on the index stocks. Read more
After hitting an all time high on intra-day trading, the market pulled back a bit on profit taking but had a strong close nevertheless. Most banks were bid very strongly at the close with SECB gaining the most followed by MBT , UBP and BPI. BDO and PNB lagged the market but PNB was strong at the close with bids accumulating around 62.80. I still think that PNB will be a no-brainer until the sock price hits just below 70. Read more
I find it quite refreshing to the mind to get out of the bustle of Metro Manila, so when I got an assignment to give a talk in Baguio this weekend, I gladly went. I left my house shortly after 3am to make it to Baguio for a 9:30am talk to an event sponsored by FINEX. I drove to Tarlac and made it through both expressways in just over an hour and quarter since there were relative few vehicles on the SCTEX. From Tarlac City, I let the driver take over and slept in the back so at least I would be fresh for my talk. What was nice was waking up to the very cool Baguio breeze as I rolled down my window as we drove into Camp John Hay. The temperature was a lot lower than the air-conditioning inside the car and the breeze coming in as I rolled down the car windows was exhilarating. It was a wonderful way to start a Saturday morning. Read more
I hope readers who believed in mining stocks, as I believed in these stocks, are seeing a profitable year of the dragon. The recent run up in NI has been relentless with many skeptics being left flatfooted as the stock zoomed out of reach. I understand that NI should be able to ship around 2 million tons of nickel this year which should bring earnings in 2012 to around Php 840 million. Read more