Friday, June 15, 2001

June 15, 2001


And so the index gets to keep its streak. Like a hot playoff basketball team (go sixers!), the market has posted its sixth-consecutive gain, resulting in a 90-point improvement in the period. It hasn't been spectacular. In fact the gains have been modest, but considering the disturbing news that we have been plagued with, from kidnappings to higher utility and fuel prices, the streak is worth glossing over, for a while at least.

Being one of the most influential index issues, PLDT has in fact been largely responsible for the gains during the week. There are theories that PLDT planned dilution in PLTL would be better for its future earnings, which really doesn't say a lot of PLTL. It could also be a technical resurgence, with the issue coming off its six-year low last week. The company's acquisition of its final major convergence piece, GMA-7 may also have played a part. A combination of those factors and perhaps a tinge of speculation from market players, drove PLDT to an 18% rise during the market's streak. As such, PLDT now stands at P725. On a daily perspective, the issue looks due for a minor correction. On a weekly one, it looks like the rally has just begun. Thus, express your disappointment that you did not catch the issue at P615, but look forward to lower-priced entry points.

BPI, which is generally not very actively traded, today shot up to prominence with a one peso gain, apart from being the most active issue in the market today. In review, the issue has performed consistently strong, and is in fact bordering on overbought in its daily, weekly and monthly charts. Based on the issue's past performance, we really don't expect any surges anytime soon.

An issue where we would expect surges however is BPC. Influenced by conflicting news such as the passage of the power bill, the approval and subsequent recall of water rates, not to mention the conglomerate's debt problems, the issue and all its listed subsidiaries have been subject to much investor speculation. For the day, BPC gained 1.03% and was once again one of the heavier traded issues. Also stealing some light is FPH, which rose 5.77% today, and by almost 15% within the past three sessions. MERB has been quite steady during the market's current run, gaining just a peso in the period, while ABS has gained a respectable 5.2% during the same.

A closely watched issue these days, ICT slightly corrected with a P0.05 dip. Although floor talk dictates that the issue will continue its remarkable ascent, its daily chart clearly shows a correction in the offing. The weekly chart however, seems to support the rumors. ICT now stands at P3.2.


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