Sunday, October 14, 2012

Boring Week This Week. Correction or Stoppage?

In my perspective, the week was a pretty boring week after a run from last week. PSEi was down 1.29% falling back to the 5,300 level to 5,369.72 as foreigners liquidated their positions in our market. A total of Php 13.5B was liquidated just for the week alone. On a daily basis this week, the index closed almost flat to a couple of percentage points down in read. It might seem there a lot of buyers locally but unfortunately I think what crippled the market from moving higher is the downward pressure of possible profit taking from foreign investors. The Philippine index is now back to YTD 22.82% with PER still on the 17 levels. The question is, will it continue? Maybe, maybe not, but what is important here is we should look further on where our economy is heading instead of dwelling what will happen next for the market.

Saturday, October 6, 2012

PSEi New All-Time High! But is it Bullish?

PSEi almost ended this week with a bang until it shied away from its gains in the afternoon trade on Friday. The Philippine index closed almost flat to 5,439.84 by 3.9 points down from Thursday. This week was another week when PSEi posted a new all time high breaching July 4’s high of 5,403.16. As good as it may seem that the market has started to awaken in the past weeks I would still personally think that valuations aren't getting any better. With PSEi at 17.95 PER, the big question is, does it still have the strength the move higher given the risks that investors have to take on higher valuations? 

Saturday, September 22, 2012

Trading Update: PSEi and etc.

Two weeks had passed when I last made my update due to some activities that I need to engaged in to for WBI. In this two-week period, PSEi came back to life after a long consolidation and volatility started back in May. This week, PSEi dropped 0.57% from last week's close of 5,322.47 and seemed to have maintained its current level from its lows. As of this writing, PER of the Philippine index is at 17.45; relatively still expensive from its Asian peers. Though our economy and the listed companies are doing well and continue to have bright prospects, I think this kind of valuation is what stopping PSEi from moving higher.

Sunday, September 2, 2012

End of Aug. 2012, PSEi battered.

As we end this very disappointing month of August, PSEi closed down by 2.1% to 5,196.19 from its July close at 5,307.66. The index clearly experienced from what they call it "the ghost month." On the brighter side of the story, The Philippine economy grew 5.9% in the second quarter of 2012 cementing its position as a growth country and one of the countries to watch in Asia. Philippines came in third from China with a GDP of 7.4% - a slow down from 8.1% in the first quarter. The growth was fueled by accelerated government spending which grew 45.7% during the quarter, remittances from abroad remained resilient though growing a bit slower at 4.2%, and strong service sector boosted by tourism. Laggards were in agriculture and exports.

Sunday, August 26, 2012

Stock Market Update: Aug 22-24, 2012

Another bad week for the Philippine bourse leaving PSEi down 60.46 points or 1.16% from last week's close; PSEi ended the week 5,143.35. A couple things happened in this short 3-day trading week, one of those is PCOR's inclusion in PSEi effective Sept. 10, 2012 in replace for CEB.  PSE implements these kinds of activities twice a year and considers the company’s public float level, liquidity, and full market capitalization in determining its eligibility in the index. For this period, I guess, PCOR's more deserving from CEB, even though they have performed sluggish this year due to losses from oil volatility. Also this week, SM had a disclosure that its BOD had approved the placement of primary common shares worth $150 million to institutional investors via a top up placement. It was said that the placement was to be done at Php700 per share and is 1.7x oversubscribed.This announcement resulted into a sell-of of SM shares closing  on Friday Php705 per share from Php745 in Thursday, a 5.37% decline. All these due to the threat of dilution.

Tuesday, August 21, 2012

Philippine Stock Market: Aug 13-17. 2012

PSEi, this week continued to slide down to 5,206.81 down from last week's close. A lot seem to be dumping positions in contrast to companies disclosing positive results this week. GMA7 net profits grew 20.1% to 626M due to higher ad spending. Remains No.1 accdng to Nielsen. PGOLD net profits jump 33.4% to 565M in 2Q12. MWIDE wins school infra PPP Project. Projects worth 12.8B. All these and a lot more, though of course some did not give favorable results like SMC operating results dissappoints due to Petron. Operting income dropped to 432M from 6B 1H12 the previous year due to oil volatility.

Sunday, August 12, 2012

Ghost Month for PSEi?

The weather this week has been devastating and I feel for those who got washed up by the floods and lost their homes and loved ones. On the business end, its about 2-3 days stoppage in operations. Our meeting this week was also affected and to be moved to a later date this coming week. As for the market, it actually didn't do much this week; I guess consolidation is kicking in as traders and investors become cautious about the ghost month.