The Philippine Stock Exchange (PSE) approved in August 2009 rules to exempt certain stocks from the price trading band or the limit in the increases or decreases of stock prices within the day.

Trading band: Max 50% price increase; max 40% price decrease

Stocks traded on the PSE currently have a limit of 50% in terms of price increases (price ceiling) and 40% in price decreases (price floor). This trading band is supposedly installed to protect investors from price volatility.

With the August 26 memorandum, the PSE agreed to lift the trading band in the following scenarios:

1. When trading resumes for securities that have been suspended for a period of one year or more;
2. When the Exchange determines that: (a) there has been an event or occurrence that may cause the price of the security to change drastically; or (b) the application of the trading band on the price may render impractical the trading of the security upon prior notice by the Exchange as may be warranted under the circumstances.

Stockbrokers see a benefit to the trading band exemption primarily with regard to the first scenario because, according to them, a stock suspended for more than a year will have to catch up with its fair market value upon resumption of trading.

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Market poised to resume its upward move

LOCAL STOCKS are likely to resume their rise this week, boosted by an extended rally in Wall Street and the scheduled announcement of the country’s growth rate for the second quarter, analysts said.

“Players will take their cue from Wall Street’s recovery during the long weekend…,” 2TradeAsia.com said.

The American Int’l. Group, Inc.’s plan to repay the US government’s lifeline and a 7.2% month-on-month and 5% year-on-year increase in sales of existing homes sent Wall Street stocks jumping on Friday, after rallying for the past three days.

The Dow Jones industrial average soared by 1.67% or 155.91 points to 9,505.96. The Standard & Poor’s 500 index rose by 1.86% or 18.76 points to 1,026.13 while the Nasdaq composite index climbed by 1.59% or 31.68 points to 2,020.90.

Local financial markets were closed on Friday because of a holiday to commemorate the slaying of Senator Benigno “Ninoy” Aquino, Jr.

The Philippine Stock Exchange index closed the week lower by 4.8% on Thursday, finishing at 2,720.18.

DBP-Daiwa Securities, Inc., meanwhile, said it expects the composite index to consolidate with an upward bias given improving economic fundamentals.

The government is due to report the gross domestic product (GDP) growth for the second quarter on Thursday.

Jun Calaycay of Accord Capital Equities Corp. said the government’s expectation the local economy grew between -0.1% and 0.9% with a contraction “possible but unlikely” has helped investors prepare for the worst.

“From the fundamental standpoint, the [government] has already conditioned the minds of investors of the possibility of a slow second-quarter [growth].

“This should tilt the market’s reaction to positive — in case the ’possible, but not likely’ scenario plays out,” he said.

Thus, the “play” for the second-quarter GDP is expected to have minimal downside, but with investors positioning for an upside should the result come out favorably, he said.

DBP-Daiwa Securities also pointed out: “earnings for April to June have shown significant progress as the average net income of stocks we cover rose by 35.1% quarter-on-quarter.”

“With this at hand, we think investors will continue to be encouraged by positive domestic developments…”

2TradeAsia.com, however, said some investors would check for momentum buildup before making their moves.

Should an upward momentum be absent, the online firm said they might opt to lock in gains during rallies.

For this week, “large caps under services, conglomerate, construction, property and banks might shine, along with shares that are sensitive to metal pricing movement,” 2TradeAsia.com said.

DBP-Daiwa Securities said it maintains its overweight stance on consumer-related stocks along with the media-related issues as these two have posted the most compelling results for the first half of the year, which it said could be sustained until the first half of next year due to election spending.

“We also reiterate our recommendation to buy on dips as basic economic fundamentals have shown improvement,” it said.

DBP-Daiwa Securities said the main index is seen trading between 2,675 and 2,800 this week.

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Investors secure gains ahead of weekend

SHARE PRICES closed lower on Thursday after investors booked profits ahead of the long weekend, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) slipped by 1.47% or 40.71 points to 2,720.18, while the all shares index shed 1.2% or 21.34 points to 1,744.29.

A total of 3.58 billion shares worth P4.25 billion were traded. Net foreign buying totaled P332 million.

Decliners led advancers 71 to 32, while 55 shares did not move.

“The trading week is shorter so it was already expected that investors [would not be] as aggressive,” 2TradeAsia.com said.

“Investors were also checking for ’momentum progression’ that was absent during the past trading days.”

The online brokerage noted there wasn’t enough buying momentum that would have encouraged investors to enter the market. In the past five trading sessions, for instance, the market rose only once and the gain was not even significant.

The composite index managed to gain 29 points on Wednesday on bargain hunting but this failed to prevent the PSEi from sliding. The index lost 4.77% week-on-week.

Jun B. Calaycay of Accord Capital Equities Corp. said investors also remain “sensitive” to market declines after experiencing a “big scare” last year when the market shed almost half of its value.

“[Yesterday] was also the first day of the ghost month. So traditional thinkers tried to avoid the market ahead of the long holiday, especially since Wall Street continues to be volatile,” he said.

Investors, Mr. Calaycay said, will monitor how the US market will do during the break before charting their next moves.

Wall Street closed higher on Wednesday after crude prices for September delivery jumped by 4.7% or $3.23 to close at $72.42 a barrel on the New York Mercantile Exchange. This was after the US government’s weekly inventory showed that crude oil supplies fell last week.

The Dow Jones industrial average rose by 0.66% or 61.22 points to 9,279.16 after investors scooped up oil-related firms on anticipation that demand for crude would rise.

The Standard & Poor’s 500 index added 0.69% or 6.79 points to 996.46, while the Nasdaq composite index rallied by 0.68% or 13.32 points to 1,969.24.

At home, however, mining and oil stocks led the losers, retreating by 2.33% or 190.54 points to 7,985.75.

Industrial stocks fell by 2.26% or 91.30 points to 3,944.18, while the service sector slid by 1.25% or 17.76 points to 1,397.08.

The property sector tumbled by 1.23% or 12.03 points to 964.72, while holding companies shed 0.87% or 13.33 points to 1,518.44.

Financial firms lost 0.1% or 0.64 point to 592.84.

Manila Electric Co. shed 5.31% or P11 to P196, while Lopez-led holding company Benpres Holdings Corp. dropped 5.26% or 20 centavos to settle at P3.60.

Benpres unit First Philippine Holdings Corp. slipped by 3.52% or P1.50 to P41, while Andrew Tan-led property company Megaworld Corp. was down by 3.12% or four centavos to P1.24.

Philex Mining Corp. declined by 2.43% or 25 centavos to P10, while index heavyweight Philippine Long Distance Telephone Co. dipped by 1.63% or P40 to P2,405.

Ty-led Metropolitan Bank & Trust Co. shed 1.33% or 50 centavos to P37, while Lopez-led Energy Development Corp. lost 1.14% or five centavos to P4.30.

Ayala Land, Inc. did not move at P9.70, while the Bank of the Philippine Islands stayed at P43.50.

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Bargain hunting ensues after downturn

SHARE PRICES closed 1.07% higher yesterday due to bargain hunting following a three-day downturn, dealers said.

The Philippine Stock Exchange index closed 29.34 points higher at 2,760.89. The all shares index rose by 1.07% or 18.79 points to 1,765.63.

A total of 2.89 billion shares worth P3 billion changed hands.

Advancers led losers 89 to 22, while 47 issues closed unchanged.

“Tomorrow, we expect the market to continue its reversal,” Ron Rodrigo of DBP-Daiwa Securities told Dow Jones Newswires.

Analysts also pointed out that the market’s rebound yesterday resulted from the US market’s recovery on Tuesday night.

“As expected, the market turned green due to the Dow’s recovery due to better-than-expected results of some retail companies and positive news about Germany’s economy,” said Daniel C. Picache of Papa Securities.

“This was inspired by recovery of the Dow in the US. It was just a relief rally from the profit taking in the past two days,” said Astro C. del Castillo of First Grade Holdings, Inc.

He added that speculation on some stocks because of rumored interest by specific parties also pushed the rebound.

The Dow Jones industrial average finished 82.60 points or 0.90% higher at 9,217.94 after a sell-off on Monday night.

The Standard & Poor’s 500 and the Nasdaq composite index similarly rose, each moving up a percent to 989.67 and 1,955.92, respectively.

Mr. Picache said late trading on Tuesday already gave signs of a rebound since there were already signs of bargain hunting especially on Lopez-led companies.

“But with a long holiday coming, it may lead investors to trim their positions. They may adopt a sell-on rally stance today, which may result in consolidation,” he said.

Mr. Picache placed the support level at 2,693 and the resistance at 2,984.

“The two-day correction already gave investors enough room to reenter the market… Buyers won’t be as aggressive as before though],” he said.

Mr. Picache noted there is still money on the sidelines since some investors were not able to get in when the market staged its run-up from the 1,800 level.

Mr. del Castillo said the market would probably hover at the 2,700 level as investors continue to digest numbers and look overseas for direction.

Mining and oil companies climbed the sharpest, going up by 3.47% or 274.52 points to 8,176.29, followed by property shares that rose by 2.39% or 22.79 points to 976.75.

Shares of service firms finished 20.15 points higher at 1,414.84, while holding companies inched up by 1.08% or 16.31 points to 1,531,77.

Industrial companies improved by 0.59% or 23.98 points to 4,035.48, while financial firms closed at 593.48, up 0.29% or 1.75 points.

Lopez holding firm Benpres Holdings Corp. climbed by 7.04% or 25 centavos to P3.80, while the Manila Electric Co. was flat at P207.

Market heavyweight Philippine Long Distance Co. closed 1.24% higher or P30 up to P2,445.

Banco de Oro Unibank, Inc., the country’s largest bank, went up 1.47% or 50 centavos to P34.50, while Ayala Corp. was steady at P297.50.

Harry G. Liu of Summit Securities, Inc. said that with the market having reached its targets, its direction would be dictated by market movements abroad.

“[What’s happening is] base building for the medium term so that the long term would catch up in anticipation that the global slide is improving,” he said. — AFP and Don Gil K. Carreon
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US market slump drags down share prices

SHARE PRICES fell further yesterday, pulled down by the chain reaction of sell-offs that started in regional bourses in Asia on Monday on news that China plans to tighten bank lending, analysts said.

The benchmark Philippine Stock Exchange index closed down by 1.43% or 39.63 points to 2,731.55, while the all shares index slipped by 17.14 points to 1,746.84.

A total of 4.07 billion shares worth P3.19 billion changed hands. Decliners led advancers 72 to 33, while 55 did not move.

Jose Mari B. Lacson of Campos, Lanuza & Co. said the local bourse’s slide yesterday was caused by the decline in the US market, which itself was partly due to the weakening of regional bourses on Monday.

“The drop yesterday had a feedback loop… Markets in Asia performed weakly on Monday and it continued to the US and then affected us,” he said.

The Dow Jones industrial average finished at 9,135.34, down by 2% or 186.06 points. The Standard & Poor’s (S&P) 500 index gave up 2.43% or 24.36 points to end at 979.73, while the Nasdaq Composite index plunged by 2.75% or 54.68 points to 1,930.84.

Reuters reported that it was the Dow and S&P 500’s worst one-day percentage sell-offs since July 2.

Mr. Lacson said this was triggered by talks that the Chinese government would increase lending rates, signaling US investors to sell on concerns that the move would slow down that country’s growth.

The Shanghai stock exchange tumbled almost 6% on Monday, as investors grew anxious over the government’s plan there to tighten lending.

Oliver P. Plana of Asiasec Equities, Inc. said aside from the US market’s fall, the local bourse was also hit by the decision of foreign funds to sell their holdings, after the major companies disclosed their earnings.

Mr. Lacson agreed investors parted with their shares after the release of their first-half performance, which did not meet expectations.

“There are underlying concerns about the earnings in the Philippines since some of the reports were below expectations and cautions were made that the worst is not over… The sentiment is really to take profits so unless we see something that could change that, the selling would continue,” he said.

Mr. Plana noted that there were signs that some major markets in the region are improving, which could prop up local trading.

“The next major macro announcement is the [economic growth results for the first half on Aug. 27]…. So investors would observe day-to-day developments to guide them,” he said.

Holding firms were the only ones to end in green, inching up by 0.04% or 0.73 point to 1,515.46.

Mining and oil companies lost 1.91% or 153.65 points to 7,901.77 followed by service firms, which gave up 1.89% or 27.01 points to 1,394.69.

Shares of financial companies slid by 1.09% or 6.50 points to 591.73, industrial firms declined by 1.08% or 43.96 points to 4,011.50, and the property sector dipped by 0.78% or 7.53 points to 953.96.

Index heavyweight Philippine Long Distance Telephone Co. lost P55 or 2.23% to end at P2,415, while competitor Globe Telecom, Inc. shed 2.02% or P20 lower at P970.

Metropolitan Trust Bank & Trust Co. was unchanged at P37, while Sy-led Banco de Oro Unibank, Inc. declined by 1.45% or 50 centavos to P34. The Bank of the Philippine Islands eased by 2.19% or P1 to P44.50.

Jollibee Foods Corp. moved up by 1.96% or P1 to P52.

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Prices tumble after investors cash in gains

SHARE PRICES closed 2.77% lower yesterday, hurt by weak US sentiment and investors cashing in ahead of the part of the lunar calendar that the Chinese consider unlucky, dealers said.

The benchmark Philippine Stock Exchange index lost 78.83 points to 2,771.18, its lowest level in three weeks, while the all shares index gave up 43 points or 2.38% to 1,763.98.

Turnover reached 3.94 billion shares worth P3.23 billion, with 114 issues down, 16 up and 24 unchanged.

“US consumer confidence was weak, and while Japan’s economy improved, there was still a negative spin to it,” Jose Vistan of AB Capital Securities told Dow Jones Newswires.

He expects further consolidation with the start on Aug. 20 of the so-called Chinese “ghost” month that is usually a slow period for Philippine equities.

Jasper M. Jimenez of BDO Securities said profit taking was evident in the huge discrepancy between losers and gainers.

“That’s [a reflection of] the sentiment now. Some investors were already expecting this last week but the market continued to be resilient,” he said.

He also pointed out that the fall in Wall Street stocks on Friday contributed to yesterday’s turnout. “It was also partly a reaction to the performance of the US market last Friday,” he pointed out.

US stocks closed lower on Friday on a report that consumer confidence fell in August. The Dow Jones industrial average lost 76.79 points to 9,321.40.

Eunika B. Maloles of 2TradeAsia.com said the market’s fall yesterday was expected especially since the mining and oil sector had a steep climb last week.

“There was broad-based profit taking and correction in all sectors led by mining since its run-up was steep last week, she said.

Mr. Jimenez said the bourse may remain at its current levels, with no fresh leads to perk up trading and with August historically a slow time for the market.

“I don’t expect the bourse to move up significantly. The market bias is really negative,” he said.

Ms. Maloles also expects lukewarm participation among investors this week due to the absence of leads and a shorter trading week.

The market will be closed on Friday in observance of martial law-era hero Benigno S. Aquino, Jr.’s death anniversary.

Ms. Maloles, however, noted that the bourse’s steep fall yesterday may prompt a rally within the week.

“The decline yesterday was pretty sharp, so we could expect a rally the next few days… We need this correction though to further push up the market in the medium term,” she said.

Mining and oil companies had the sharpest fall, tumbling 3.52% or 293.69 points to 8,055.42 followed by industrial firms, which dropped by 3.14% or 131.36 to 4,055.46.

Property shares lost 3.02% or 29.96 points to finish at 961.49, while service companies declined by 2.98% or 43.65 points to 1,421.70.

Holding firms dipped by 2.31% or 35.80 to 1,514.73, while financial stocks slipped by 1.82% or 11.06 or 598.23.

Ayala Corp. lost P7.50 or 2.4% to finish at P300, while units Bank of the Philippine Islands and Ayala Land, Inc. finished 50 and 20 centavos lower, respectively, at P45.50 and P9.40.

The country’s largest bank, Sy-led Banco de Oro Unibank, Inc. shed 1.43% or 50 centavos to P34.50, while SM Investments Corp.’s shares dipped by 2.31% or P7.50 to P317.50.

Index heavyweight Philippine Long Distance Telephone Co. lost P75 or 2.95% to end at P2,470.

The Manila Electric Co., on the other hand, shed 3.59% or P8 to close at P215. — AFP and Don Gil K. Carreon

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Mixed trading expected on lack of catalysts

THE LOCAL market is expected to continue trading within its current range as some investors might book profits due to lack of catalysts.

Analysts, however, said select issues might trim the market’s losses or help it close higher.

“For [this] week, the market is expected to take a breather on lack of catalysts as the central bank has already hinted there will be no rate movement when they meet on [Thursday],” DBP-Daiwa Securities, Inc. said.

The brokerage said this, along with a shortened trading week, would make investors wary of entering the market or allowing their investments to stay long in equities.

There will be no trading on Friday, which is a holiday to commemorate the death anniversary of Benigno “Ninoy” Aquino, Jr.

Selling, DBP-Daiwa Securities noted, had become evident since last week, with foreign investors posting a net selling of P1.15 billion, reversing the P707 billion in net buying the previous week.

“[They] have started taking advantage of the market’s recent rallies [as an opportunity to book their gains],” it said.

DBP-Daiwa Securities also pointed out that as far as seasonal factors are concerned, August has never been on the side of investors since historical data during the past 21 years showed the market declining during this “ghost” month.

With activity expected to slow down this week, Prince Anthony A. Yeung of AB Capital Securities, Inc. said buying would likely be focused on “select stocks with specific plays,” especially now that it remains to be seen whether the US market’s main indices could post new highs.

The US market closed lower on Friday after reports showed that consumer confidence slipped during the early part of the month. The Dow Jones industrial average shed 0.82% or 76.79 points to 9,321.40.

The Standard & Poor’s 500 index dipped by 0.85% or 8.64 points to 1,004.09, while the Nasdaq composite index shed 1.19% or 23.83 points to 1,985.52.

Despite some investors booking their gains last week, the Philippine Stock Exchange index managed to close 2.41% higher week-on-week to settle at 2,850.01.

For this week, however, Mr. Yeung said: “On the local front, there also would not be much catalyst for the local market to move higher [especially] since the Bangko Sentral ng Pilipinas will most probably leave interest rates unchanged.”

The Monetary Board of the central bank is meeting this Thursday to revisit key rates.

The Manila Electric Co. (Meralco) and Philex Mining Corp., which pushed up the index, might remain the focus of investors, however.

Meralco and Philex Mining are being rumored to be the subject of a bidding war by two of the Philippines’ most influential businessmen: San Miguel Corp. President Ramon S. Ang and Metro Pacific Investments Corp. Chairman Manuel V. Pangilinan.

“It seems that the market [would find it hard to go beyond] the 2,900 level [although] it would [be able to] find some support at 2,800. This will most probably be the narrow range that the market would move within this week,” Mr. Yeung said.

Nonetheless, DBP-Daiwa Securities said it welcomes the anticipated correction since the market needs to take a breather after an increase of 17.11% since the start of the second half.

“Should the market correct this week, we recommend that investors buy on the dip since the upward trend of the index has remained intact while the global economy slowly shows signs of improvement,” DBP-Daiwa Securities said.

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Stocks down on profit-taking

Philippine stocks fell on Friday as investors cashed in on gains made a day earlier when shares soared following the US Federal Reserve’s upbeat assessment of the US economy.

Concerns over a bigger budget deficit in 2010 also triggered a selloff, analysts said.

The benchmark Philippine Stock Exchange index or PSEi lost 0.21%, or 6.05 points, to 2,850.01, while the all-shares index slipped 0.27% to 1,806.98. A total of 3.4 billion shares worth P2.69 billion changed hands. Decliners led advancers 55 to 46, while 57 shares did not move.

“The slight slide in the share prices today was brought about by profit-taking by investors following the recent market advance, [especially after Fed announced that the US, the world’s biggest economy, is stabilizing],” Grace C. Cerdenia, chief operating officer of online brokerage firm 2TradeAsia.com, said.

The Fed said Thursday that US economic activity was leveling out, allowing rates to remain at near zero for an “extended period.” That drove a rally in Asian markets that day, including the Philippines.

Ms. Cerdenia said investors unloaded their portfolios after economic managers raised the target budget shortfall to P233.4 billion for next year from P208.4 billion, as part of the government’s economic pump-priming efforts.

Justino B. Calaycay, Jr., analyst at Accord Capital Equities Corp., said investors bracing themselves for a slump in share prices during the traditional “ghost” month of August contributed to the price pullback.

Since investors normally stay on the sidelines in August, news pointing to a global economic recovery won’t help, he said.

“There is already a general consensus that we are not going into a recession, and this was already factored in by the investors,” Mr. Calaycay said.

Select industrial, as well as mining and oil issues, pulled down share prices, with the Manila Electric Co. weighing down on the market with an 8.61% loss.

Industrial stocks lost 2.59%, or 111.46 points, to 4,186.82, while mining and oil tumbled by 2.72% or 233.14 points.

GMA Network, Inc., Philex Mining Corp., First Gen Corp., class “A” shares of Lepanto Consolidated Mining Co., Vista Land and Lifescapes, Inc., Aboitiz Power Corp., and Globe Telecommunications Co. all pulled down the PSEi.

On the other hand, International Terminal Container Services Inc., which advanced by 6.49%, led upward movers among index stocks.

Other PSEi stocks that gained on Friday were Ayala Corp, Ayala Land, Inc., SM Prime Holdings, Manila Water Co., Rizal Commercial Banking Corp., Banco de Oro Unibank, Inc., Robinsons Land Corp., Jollibee Foods Corp., and SM Investments Corp.

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Federal Reserve announcement fuels rally

SHARE PRICES closed 0.97% higher yesterday as investors took their cue from overseas markets and an upbeat assessment of the US economy by the Federal Reserve, dealers said.

The benchmark Philippine Stock Exchange index rose by 27.54 points to 2,856.06. The all shares index rose by 0.94%, or 17.02 points, to 1,811.94.

A total of 3.80 billion shares worth P3.12 billion were traded.

Advancers led decliners 71 to 32 while 51 issues closed unchanged.

“It was influenced in a way by markets abroad, specially after the [US Federal Reserve] statement on the economy,” Jose Vistan of AB Capital Securities told Dow Jones Newswires.

“But with the Fed meeting over and most corporate earnings out, there is little in terms of catalyst for the market in the coming days. Expect profit taking.”

The Fed on Wednesday said it would keep its super-low interest rate on hold for a while but gradually end its program of Treasury bond purchases, adding the world’s biggest economy was stabilizing.

Wall Street stocks rallied. The Dow Jones industrial average gained 1.30% or 120.16 points to 9,361.61.

The Standard & Poor’s 500 index climbed by 1.15% or 11.46 points to 1,005.81, while the Nasdaq composite index gained 1.47% or 28.99 points to 1,998.72.

Emmanuel P. Soller of Equitiworld Securities, Inc. however pointed out that the US market serves only as a guide for the local market, even if its rallies usually prompt the same locally.

“The US market’s drops are used by investors to take their profits out. But overall, the local market remains [upbeat],” he said.

Selling pressure builds up, he pointed out, whenever the market nears the 3,000 mark because investors want to book their profits and not because they feel the future looks bleak.

“Investors play safe but this selling pressure will just be temporary unless there is negative news significant enough to make investors pessimistic of the market again,” Mr. Soller said.

Only one of the six subindices tumbled.

The service sector rose by 2.41% or 34.30 points to 1,456.80, while holding firms climbed by 2.16% or 32.44 points to 1,533.84.

The mining and oil sector gained 0.41% or 35.83 points to 8,582.25, while financial stocks advanced by 0.32% or 1.98 points to 606.66.

Property shares added 0.26% or 2.57 points to 977.87.

Industrial companies, however, tumbled by 0.43% or 18.71 points to 4,298.28.

Most blue chips closed higher.

Andrew Tan-led Megaworld Corp. added 2.98% or four centavos to P1.38, while index heavyweight Philippine Long Distance Co. climbed by 2.01% or P50 to P2,530.

Sy-led Banco de Oro Unibank, Inc. gained 1.47% or 50 centavos to P34.50.

Ayala Land, Inc. did not move at P9.40, as well as sister firm Bank of the Philippine Islands, which stayed at P46 apiece.

Manila Electric Co. fell by 2.4% or P6 to P244, while the Metropolitan Bank & Trust Co. tumbled by 1,.29% or 50 centavos to P38.

Maria Arlysa E. Narciso of AB Capital Securities, Inc. disagreed with AB Capital Securities’ Mr. Vistan, saying developments in the foreign markets as well as local earnings reports would continue to be major drivers for the local market.

“Earnings became the highlight of the week and reflected second-quarter impact of the slowdown on economic and business activity. Keep an eye on food-related companies as this could perform well in the coming months,” she said.

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Prices tumble after US stocks decline anew

SHARE PRICES succumbed to profit taking yesterday with investors taking their cue from Wall Street, which extended its decline, analysts said.

The benchmark Philippine Stock Exchange index lost 1.11% or 32.02 points to 2,828.52, while the all shares index slipped by 1.01% or 18.36 points to 1,794.92.

A total of 4.74 billion shares worth P2.82 billion were traded with net foreign selling summing up to P316 million.

Decliners led advancers 67 to 33, while 65 shares did not move.

“We just tracked the US market. Its almost a hundred-point drop put pressure on our market,” Ivan I. Nario of BDO Securities, Inc. said.

“This could be the start of the long-awaited correction since investors just follow the momentum of [both the overseas and local markets].”

Mr. Nario said the US market is showing some signs of volatility, making investors cautious.

As such, they might sell their positions if they see the prices not going up. After all, Mr. Nario pointed out, the PSEi has broken above the 2,600 and 2,800 levels, which most analysts earlier said would be the best scenarios for equities this year.

“We have been in the overbought level for sometime already, although there is still liquidity in the market that is why there is not much selling pressure,” he said.

Jun B. Calaycay of Accord Capital Equities Corp. said the inability to break above current resistance levels means investors don’t believe share prices would rise so much.

Investors, he said, could be bracing themselves for slumping prices during the “ghost” month of August.

“But despite that, there is no massive sell-off. The market is just trading within a very narrow band and I think those who have bought in are still holding on to their shares, hoping that after the ghost month, the market will resume its upward move since the general economy is already doing well,” he said.

A gloomy forecast for the US banking industry pulled down financial stocks on Tuesday night. The Dow Jones industrial average shed 1.03% or 96.50 points to 9,241.45.

The Standard & Poor’s 500 index slipped by 1.27% or 12.77 points to 994.33, while the Nasdaq composite index tumbled by 1.13% or 22.51 points to 1,969.73.

At home, industrial shares lost 2.32% or 102.54 points to 4,316.99, while holding firms slipped by 1.73% or 26.44 points to 1,501.40.

Mining and oil stocks declined by 1.42% or 123.94 points to 8,546.42, while property shares tumbled by 1.21% or 12.03 points to 975.30.

The service sector dipped by 0.11% or 1.61 points to 1,422.50.

Financial stocks, on the other hand, managed to climb by 0.27% or 1.66 points to 604.68.

Most blue chips closed lower.

Manila Electric Co. declined by 4.76% or P12.50 to P250, while Andrew Tan-led Megaworld Corp. lost 1.47% or two centavos to P1.34.

Sy-led Banco de Oro Unibank, Inc. slipped by 1.44% or 50 centavos to P34, along with Ayala Land, Inc., which fell by 1.05% or 10 centavos to P9.40.

Index heavyweight Philippine Long Distance Telephone Co. lost 0.2% or P5 to P2,480.

Philex Mining Corp. did not move at P10.75, after pushing up share prices the previous day. Likewise, Metropolitan Bank & Trust Co. stayed at P38.50 per share.

The Bank of the Philippine Islands, on the other hand, added 1.09% or 50 centavos to P46.

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Profit taking caps gains by mining stocks

SELECT MINING issues managed to push up share prices yesterday despite investors pocketing gains due to lack of positive leads, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) gained 0.34% or 9.96 points to 2,860.54, while the all shares index added 0.32% or 5.82 points to 1,813.28.

A total of 7.93 billion shares worth P5.45 billion were traded. Net foreign selling widened to P323 million.

Advancers led decliners 57 to 43, while 66 shares did not move.

“The upside came from mining-related stocks, led mostly by Philex Mining Corp.,” Eunika B. Maloles of 2TradeAsia.com said.

“The rally, however, was tempered by [profit takers] who took their cue from the [drop in Wall Street stocks on Monday night].”

Doreen Mijares of IGC Securities, Inc. said the PSEi’s gain was minimal since most mining stocks are not part of the index.

The mining and oil sector climbed the most yesterday, surging by 5.8% or 475.89 points to 8,670.36, buoyed mainly by Philex and Lepanto Consolidated Mining Co.

Philex jumped by 8.58% or 85 centavos to P10.75. Lepanto “B” shares, open to all investors, climbed by 6.45% or two centavos to 33 centavos, while “A” shares, exclusive to locals, also added 3.22% or a centavo to 32 centavos.

Both companies recently figured in newspaper headlines. San Miguel Corp. President Ramon S. Ang said he was interested in acquiring a stake in Philex. Lepanto, meanwhile, confirmed rumors that Hong Kong-based First Pacific Ltd. Co. is interested in making an investment in the mining firm.

Other mining-related issues that rallied yesterday included Nihao Mineral Resources International, Inc. that jumped by 16.66% or P1.75 to P12.25 and Abra Mining and Industrial Corp. that rose by 10% or P0.0005 to P0.0055.

But with the market having already reached an overbought level, Ms. Mijares said it is bound to correct, which explains the PSEi did not close higher despite reaching an intraday high of 2,873.53.

“Right now, our outlook for the market is it will continue to correct but it will not fall steeply since those investors who were left behind when the market was rallying will view whatever correction as an opportunity to enter,” Ms. Mijares said.

Profit taking also pulled down Wall Street stocks on Monday. The Dow Jones industrial average lost 0.34% or 32.12 points to 9,337.95.

At home, holding firms climbed by 0.41% or 6.25 points to 1,527.84.

The service sector added 0.35% or 5.10 points to 1,424.11, while industrial shares rose by 0.005% or 0.23 point to 4,419.53.

Financial stocks, on the other hand, dipped by 0.24% or 1.47 points to 603.02, while property shares slipped by 0.13% or 1.37 points to 987.33.

Blue chips closed mixed, with index heavyweight Philippine Long Distance Telephone Co. rising by 0.2% or P5 to P2,485.

Manila Electric Co. did not move at P262.50.

Ayala Land, Inc. was flat at P9.50, along with sister firm the Bank of the Philippine Islands, which stayed at P45.50.

Rival bank Ty-led Metropolitan Bank & Trust Co. remained at P38.50 apiece.

Andrew Tan-led Megaworld, on the other hand, lost 1.44% or two centavos to P1.36, along with Sy-led Banco de Oro Unibank, Inc., which dipped by 1.42% or 50 centavos to P34.50.

Entry Credits: http://www.bworldonline.com

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Wall Street, corporate news push up prices

UPBEAT INVESTOR sentiment, buoyed by corporate developments at home and a rally in US stocks on Friday, pushed up share prices yesterday, analysts said.

The benchmark Philippine Stock Exchange index gained 2.42% or 67.60 points to 2,850.58, while the all shares index rallied by 2.05% or 36.34 points to 1,807.46.

A total of 6.81 billion shares worth P10.21 billion were traded. Net foreign selling summed up to P163 million.

Advancers led decliners 83 to 32, while 49 shares did not move.

“The local market got a boost from the US market and this countered what could have been another week of correction,” said Francisco M. Liboro of PCCI Securities Brokers Corp.

At home, stories on planned acquisitions and corporate earnings helped push up the index.

“The market’s valuation is still not that high so [there is still room for it to go up],” he said.

“Moving forward, favorable economic data and corporate income should continue to drive up the composite index.”

The US market closed higher on Friday after the US Labor department reported that the unemployment rate fell for the first time in 15 months, easing slightly to 9.4% in July from 9.5% in the previous month.

The Dow Jones industrial average gained 1.21% or 113.81 points to 9,370.07, while the Standard & Poor’s 500 index rose 1.34% or 13.40 points to 1,010.48. The Nasdaq composite index climbed by 1.37% or 27.09 points to 2,000.25.

Mr. Liboro also pointed out that the market’s ability to stay above the 2,800 level means that investors remain upbeat on their equity investments although the local market would continue to take its cue from the US market.

Astro C. del Castillo of First Grade Holdings, Inc. agreed, saying investors are reacting favorably to economic and corporate news.

“Right now, it is hard to stop a train that is so full of money. The market is so liquid and [equities] are still a better investment vehicle for most investors,” he said.

“Eventually however, it will correct but as long as there is positive news, the market will continue to rally.”

All six subindices rallied along with the composite index yesterday.

Mining and oil stocks jumped by 7.38% or 563.61 points to 8,194.47, while industrial shares climbed by 4.9% or 206.78 points to 4,419.30.

Holding firms rose by 1.62% or 24.31 points to 1,521.59, while property stocks gained 1.34% or 13.14 points to 988.70.

The service sector advanced by 1.32% or 18.56 points to 1,419.01, while financial shares added 0.91% or 5.47 points to 604.49.

Blue chips closed higher, led by Lopez-led First Philippine Holdings Corp. that zoomed up by 11.84% or P4.50 to P42.50.

Unit Manila Electric Co. jumped by 11.7% or P27.50 to P262.50.

Philex Mining Corp. soared by 10% or P0.90 to P9.90.

Andrew Tan-led Megaworld Corp. rose by 2.98% or four centavos to P1.38.

Sy-led Banco de Oro Unibank, Inc. added 1.44% or P0.50 to P35.

Index heavyweight Philippine Long Distance Telephone Co. climbed 1.43% or P35 to P2,480.

Ayala-led the Bank of the Philippine Islands gained 1.11% or P0.50 to P45.50.

Metropolitan Bank & Trust Co., meanwhile, lost 1.28% or P0.50 to P38.50, while Ayala Land, Inc. did not move at P9.50.

Entry Credits: http://www.bworldonline.com

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Good corporate earnings and the lack of bad news in the economic front pushed Philippine shares to open strong Monday.

The bellwether 30-company Philippine Stock Exchange index surged 67.60 or 2.42 percent to 2,850.58 while the broader all shares climbed 36.34 points or 2.05 percent to 1,807.46.

Optimism was felt across the board as all sectors ended in the green led by Mining and Oil’s 7.38 percent leap and Industrial’s 4.90 percent jump.

Similarly, market breadth was positive with 6.818-billion shares worth P10.23 billion changing hands. Net of crosses, market turnover was valued at about P2.7 billion.

Some 756-million shares of Pilipino Telephone Corp. were crossed at a special block share on Monday. Smart Communications has made a tender offer to acquire the 7.2-percent stake in Piltel held by the public. Smart and Piltel are both subsidiaries of telecommunications giant Philippine Long Distance Telephone Co.

“Both in the domestic and overseas fronts, there was no bad news. Corporate results are also indicating recovery of the worldwide economy,” said Emmanuel Soller, EquitiWorld Securities trader.

Last Friday, the Dow Jones industrial average rose nearly 114 points at 9, 370.07, breaching a key level.

In Asia, most bourses were trading in the green led by Hong Kong’s Hang Seng with a 2.21-percent ascent.

Entry Credits: http://ph.news.yahoo.com/gma

Prices may resume climb on US jobs data

THE NEWS over US employment data for July might spur buying this week although the market might also continue to correct, analysts said.

“The sun will come out [today.] After a week of correction, the good news will reverberate in the region this week and that will affect the local market, allowing the index to move higher,” Astro C. del Castillo of First Grade Holdings, Inc. said.

The US Labor department, last Friday in the US, reported that the unemployment rate fell for the first time in 15 months, easing slightly to 9.4% in July from 9.5% in the previous month.

The US shed 247,000 jobs that month, significantly lower than the 443,000 in June.

The US market reacted positively, taking the fresh numbers to mean the recession is bottoming out. The Dow Jones industrial average gained 1.21% or 113.81 points to 9,370.07.

The Standard & Poor’s 500 index rose 1.34% or 13.40 points to 1,010.48, while the Nasdaq composite index climbed by 1.37% or 27.09 points to 2,000.25.

For its part, the Philippine Stock Exchange index (PSEi) closed the week lower by 0.55% to 2,782.98 after almost a month of finishing in the green. It was pulled down by profit taking that started Thursday.

The local bourse had closed long before the Friday rally in the US.

DBP-Daiwa Securities, Inc. said the possibility of the correction extending to this week is high given the market’s overbought condition.

“The market is expected to consolidate as global financial sentiments become cautious, given the sharp advances of the global market. Investors will be focused on preserving gains as the market heads for a minor correction,” it said.

Since the year started, the PSEi has risen by 48.06%, slightly lower than the regional average’s year-to-date gain of 49.8%, the brokerage firm noted.

AB Capital Securities, Inc. nevertheless said corporate earnings would continue to influence the movement of the Philippine market since the country is not yet halfway through the corporate earnings reporting season.

Positive corporate results coupled with upbeat economic data, DBP-Daiwa Securities said, would limit whatever correction the market might see this week.

Mr. del Castillo shares the same outlook, saying that although there is still room for a correction given the market’s overbought condition, this might be offset by the good news released last week in the US.

“Any correction will be an opportunity for investors to look at certain issues given the changing fundamentals. More and more investors are going back to the market as shown by the growing value turnover,” Mr. del Castillo said.

As of last week, average value turnover reached P3.67 billion, lower than the P5.36 billion recorded in the previous week but significantly higher than the P1-billion mark the market was making at the start of the year.

But whether the market would rally to the 3,000 level is another question, although Mr. del Castillo said given how the market broke above the 2,800 and 2,900 levels in the previous week, anything right now is possible.

“As long as the market will not go up too fast and too soon, investors’ money are safe in the equities,” he said.

“Investors are advised to buy on dips, while the market corrects as overall upward trend has remained intact,” DBP-Daiwa Securities added.

Source: http://www.bworldonline.com

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PSE-Manila Times tourney draws 700
About 700 players have already signed up for the second annual stock market competition organized by the Philippine Stock Exchange (PSE) and The Manila Times, an official said.

The 2009 PSE-Manila Times Equity Challenge is an online stock trading tournament that aims to sharpen the stock market skills of the participants by exposing them to a real-world trading experience—but with the use of virtual money, the organizers said.

“We want to popularize investing in the stock market, which is not just for the rich or for those living in Manila,” said Dante “Klink” Ang 2nd, president and chief executive officer of The Times.

“The stock market is a vital financial intermediary of any economy that is supposed to bring together those with excess money with those who need it,” he added. “The Philippines has the oldest—but weakest—bourse in Southeast Asia, but hopefully we can make a modest contribution in helping change that.”

Jay Peñaflor, tournament project head and senior market specialist at the stock exchange’s Marketing Education Department, said, “We have 700 participants as of press time, most of them professionals.”

He added that many participants signed up for the tournament when it was kicked off in June, but the stock exchange system broke down after a fire broke out at bourse’s office in Ortigas district in Pasig City.

The tournament was relaunched in July, and other interested participants can register until August 31, 2009, Peñaflor said.

The contest runs to the close of trading hours on March 19, 2010, and the contestant with the highest earnings wins, he added.

Source: http://www.manilatimes.net

Prices dive as investors continue pocketing gains

Without any leads to spur buying, investors again pocketed profits on Friday, sending share prices down.

The benchmark Philippine Stock Exchange index slipped by 2.04% or 58.23 points to 2,782.98, while the all-shares index declined by 1.56% or 28.17 points to 1,771.12.

A total of 5.22 billion shares worth P2.84 billion were traded, with net foreign buying at P89 million. Decliners led advancers 80 to 40 while 46 stocks did not move.

“The market experienced a major correction after rallying so much in the past. But this should be seen as something healthy since this would give investors a chance to enter,” Jeng T. Calma of A&A Securities, Inc. said.

She said stocks might rally again but it is hard to say when considering now is the “ghost” month of August, when stocks normally slump. She advised investors not to do heavy buying but to instead accumulate stocks slowly.

Ms. Calma, however, said it is unlikely the market would go below 2,700 since there is a strong support at this level as shown by the market’s past behavior.

US stocks, meanwhile, closed lower on Thursday night — giving no clues to investors — ahead of the release of employment data for July.

The Dow Jones industrial average lost 0.27% or 24.71 points to 9,256.26, while the Standard & Poor’s 500 index declined by 0.56% or 5.64 points to 997.08. The Nasdaq composite index slid by 1% or 19.89 points to 1,973.16.

At home, the service sector dipped by 3.18% or 46 points to 1,400.45, while holding firms declined by 2.39% or 36.79 points to 1,497.28.

Industrial shares lost 2.37% or 102.40 points to 4,212.52, while financial shares was down by 1.87% or 11.43 points to 599.02.

Property stocks slipped by 0.13% or 1.28 points to 975.56.

Mining and oil stocks, on the other hand, climbed by 6.72% or 480.89 points to 7,630.86.

Blue chips closed mixed, with the Manila Electric Co. tumbling by 4.47% or P11 to P235 and index heavyweight Philippine Long Distance Telephone Co. dipping by 4.11% or P105 to P2,445.

The Bank of the Philippine Islands lost 2.17% or a peso to P45.

Metropolitan Bank & Trust Co. and Andrew Tan-led Megaworld Corp. did not move at P39 and P1.34 per share, respectively.

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Share prices dip after investors book profits

SHARE PRICES slipped yesterday after investors pocketed gains, analysts said. US stocks also fell, dampening sentiment.

The benchmark Philippine Stock Exchange index lost 1.58% or 45.75 points to 2,841.21, while the all shares index retreated by 1.15% or 20.98 points to 1,799.29.

A total of 5.1 billion shares worth P3.67 billion were traded with net foreign selling at P104 million.

Decliners led advancers 66 to 39, while 58 shares did not move.

The Dow Jones industrial average lost 0.42% or 39.22 points to 9,280.97, while the Standard & Poor’s 500 index lost 0.29% or 2.93 points to 1,002.72. The Nasdaq composite index dipped by 0.91% or 18.26 points to 1,993.05.

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