Wednesday, June 27, 2001

June 27, 2001


In seven of the last eight trading sessions, the index trended lower. In that span, the index has lost a cumulative 63.57 points. With today's 7.71-point decline, the index level settled at 1415.73. The mood wasn't half as festive today, with no wild market swings and the index trading in a narrow 11-point range.

The sluggishness was partly attributable to the wait and see stance of most investors with ex-President Estrada's arraignment just a day awayu. President Arroyo has made repeated pronouncements of unnamed groups allegedly organizing destabilization acts, reminiscent of the May 1 attack on Malacanang. True enough, we believe that adds uncertainty to the investment atmosphere even as the PNP and the military massed their forces in Metro Manila.

Based on the main counter's chart, we find it more beneficial for the market to continue its decline, perhaps for the last two days of the week. After that, the index may just hit its support level at around 1390 and at the same time be technically oversold. That would thus provide investors a good buying window.

Meanwhile, from under our noses, MBT has been sliding past its comfort zone. Following today's P4 slip, MBT at P205 is now at its lowest point since President Arroyo assumed the presidency. The issue seems to be at support level already. Being technically oversold at the same time, we could see a bounce for MBT. On the other hand, it also looks primed to cover a gap at the P192 level. A look at the issue's weekly chart however, shows that it may have an even long drop ahead of it, with P167 as the next major support level.

Earlier, BPC clarified an earlier news report stating that The Supreme Court had denied the company's petition for review of the CA's ruling revoking the company's permit to operate its cellular business. The company said that the petition in fact is still pending in the court. BPC as of late has been mimicking the index' fluctuations, and has lost 20% in the past eight sessions. Today it closed at P1.56.

In a belated move to ride the IT bandwagon, mining stock ISM announced that it added information technology or telecom and other similar businesses under its articles of incorporation. ISM today was steady at P0.05 with over P10mn in turnover.

AEV confirmed that it may opt to delay the sale of WG&A, wherein the company has an indirect interest through Aboitiz Transport System. WG&A announced a return to profitability for the first quarter. AEV gained 1.43% to P1.42, while WGA was untraded.


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