August 9, 2001
Are you scared yet?
For over a week now, we have been waiting for the market to give clearer signals as to the direction it will be taking in the short-term. We waited for such issues like PLDT, MER, MERB, BPI, AC, ALI and SMPH to weaken towards their respective support levels. We waited for the index itself to touch the 1280 level.
Now all of a sudden, that level has been breached, it just seemed vaguely possible. We believe a lot of the negative factors like the Abu Sayyaf terrorist activities in the south, the various scandals popping out left and right, and even the mind boggling budget deficit, have all been factored somewhat by the market. By factored, I mean we all know they're just out there, but we're numb already to a point.
That being said, we can really only point our fingers to the big foreign fund managers that have suddenly decided to liquidate their holdings here. And what timing to do so too. The market is well on its way to an 8-week downslide. Why they chose to dump their holdings now could be a sign of frustration or sadism towards us little investors. Well, that's what happens when you invest in a small-cap market. A little re-weighting of the porfolio and down goes the market.
So what's a good investment strategy? Personally, I think it's a time to buy. When you have big cap issues lingering dwelling in 8-year lows, there just has to be more upside than downside. Then again, I remember reading a commentary wherein we naturally believe things will improve in a year or so even if there are no fundamental reasons to do so. Well I have to admit, PLDT has never been a favorite. Not only is the IT community up in arms for the company's alleged monopolistic practices, there have been anomalies regarding the company's transfer of shares (remember Erap and Mark Jimenez?). Then again, as an investor, we have to recognize that PLDT, by virtue of its market capitalization is one of the few local issues that big fund managers will look at. Plus, it has positive earnings and cashflows for the first half of the year. That's a rarity among listed companies, given a backdrop of business closures and record unemployment levels. Obviously this means I bought TEL shares already. Yep, I did the same thing with AC and MERB.
What will you do?
Thursday, August 09, 2001
August 9, 2001
Are you scared yet?
For over a week now, we have been waiting for the market to give clearer signals as to the direction it will be taking in the short-term. We waited for such issues like PLDT, MER, MERB, BPI, AC, ALI and SMPH to weaken towards their respective support levels. We waited for the index itself to touch the 1280 level.
Now all of a sudden, that level has been breached, it just seemed vaguely possible. We believe a lot of the negative factors like the Abu Sayyaf terrorist activities in the south, the various scandals popping out left and right, and even the mind boggling budget deficit, have all been factored somewhat by the market. By factored, I mean we all know they're just out there, but we're numb already to a point.
That being said, we can really only point our fingers to the big foreign fund managers that have suddenly decided to liquidate their holdings here. And what timing to do so too. The market is well on its way to an 8-week downslide. Why they chose to dump their holdings now could be a sign of frustration or sadism towards us little investors. Well, that's what happens when you invest in a small-cap market. A little re-weighting of the porfolio and down goes the market.
So what's a good investment strategy? Personally, I think it's a time to buy. When you have big cap issues lingering dwelling in 8-year lows, there just has to be more upside than downside. Then again, I remember reading a commentary wherein we naturally believe things will improve in a year or so even if there are no fundamental reasons to do so. Well I have to admit, PLDT has never been a favorite. Not only is the IT community up in arms for the company's alleged monopolistic practices, there have been anomalies regarding the company's transfer of shares (remember Erap and Mark Jimenez?). Then again, as an investor, we have to recognize that PLDT, by virtue of its market capitalization is one of the few local issues that big fund managers will look at. Plus, it has positive earnings and cashflows for the first half of the year. That's a rarity among listed companies, given a backdrop of business closures and record unemployment levels. Obviously this means I bought TEL shares already. Yep, I did the same thing with AC and MERB.
What will you do?
Are you scared yet?
For over a week now, we have been waiting for the market to give clearer signals as to the direction it will be taking in the short-term. We waited for such issues like PLDT, MER, MERB, BPI, AC, ALI and SMPH to weaken towards their respective support levels. We waited for the index itself to touch the 1280 level.
Now all of a sudden, that level has been breached, it just seemed vaguely possible. We believe a lot of the negative factors like the Abu Sayyaf terrorist activities in the south, the various scandals popping out left and right, and even the mind boggling budget deficit, have all been factored somewhat by the market. By factored, I mean we all know they're just out there, but we're numb already to a point.
That being said, we can really only point our fingers to the big foreign fund managers that have suddenly decided to liquidate their holdings here. And what timing to do so too. The market is well on its way to an 8-week downslide. Why they chose to dump their holdings now could be a sign of frustration or sadism towards us little investors. Well, that's what happens when you invest in a small-cap market. A little re-weighting of the porfolio and down goes the market.
So what's a good investment strategy? Personally, I think it's a time to buy. When you have big cap issues lingering dwelling in 8-year lows, there just has to be more upside than downside. Then again, I remember reading a commentary wherein we naturally believe things will improve in a year or so even if there are no fundamental reasons to do so. Well I have to admit, PLDT has never been a favorite. Not only is the IT community up in arms for the company's alleged monopolistic practices, there have been anomalies regarding the company's transfer of shares (remember Erap and Mark Jimenez?). Then again, as an investor, we have to recognize that PLDT, by virtue of its market capitalization is one of the few local issues that big fund managers will look at. Plus, it has positive earnings and cashflows for the first half of the year. That's a rarity among listed companies, given a backdrop of business closures and record unemployment levels. Obviously this means I bought TEL shares already. Yep, I did the same thing with AC and MERB.
What will you do?
Wednesday, August 01, 2001
August 1, 2001
Whatta Drop
A broad-based selling spree, led by a number of index heavyweights brought about a 29.18-point decline in the Phisix. We earlier reported that we see the index testing the 1300 psychological barrier soon, or perhaps even the 1288 level where a gap has yet to be covered, although we did not expect the intense selling pressure experienced by the market today.
Most of the credit should go to TEL, as it lost P45 and closed at P630, its intraday low. This level is already an acceptable buying level, although it may even hit P600, perhaps by tomorrow. The issue's nearest low was at P610, registered in early June. Before that, the last time TEL reached this low was in 1995. There are fears that TEL may again report below-par earnings as it did last year.
SMPH was also one of the major losers for the day, slipping 4.76% to P6. We suggest watching the issue as it nears oversold levels.
Combined foreign selling for the two issues reached P43mn, compared to the rest of the market which netted a net foreign selling figure of P36mn.
In marked contrast to the rest of the market, MFC reached another all time high, gaining a hefty P75 to P1585. SLC however is fast on its heels, rising by P10 today and closing just a shade lower than its all-time high of P1335.
AC finally reached P6, covering the gap at the same level. Oversold for over a week now, the issue could prove to be one of the leaders should the index wage a technical bounce at the end of the week. Buy.
MER lost a peso today, in line with the broad market's movements. The decline caused the issue to drop to an 8-year low.
MERB on the other hand lost P2 and is fast approaching attractive buying levels. We recommend buying the issue at P40 or lower.
LTDI, which has a short-term cap at P30, didn't get the chance to test it as the issue was weighed down by the gloom of the rest of the market. Furthermore, the company likewise reported disappointing results for the half.
Whatta Drop
A broad-based selling spree, led by a number of index heavyweights brought about a 29.18-point decline in the Phisix. We earlier reported that we see the index testing the 1300 psychological barrier soon, or perhaps even the 1288 level where a gap has yet to be covered, although we did not expect the intense selling pressure experienced by the market today.
Most of the credit should go to TEL, as it lost P45 and closed at P630, its intraday low. This level is already an acceptable buying level, although it may even hit P600, perhaps by tomorrow. The issue's nearest low was at P610, registered in early June. Before that, the last time TEL reached this low was in 1995. There are fears that TEL may again report below-par earnings as it did last year.
SMPH was also one of the major losers for the day, slipping 4.76% to P6. We suggest watching the issue as it nears oversold levels.
Combined foreign selling for the two issues reached P43mn, compared to the rest of the market which netted a net foreign selling figure of P36mn.
In marked contrast to the rest of the market, MFC reached another all time high, gaining a hefty P75 to P1585. SLC however is fast on its heels, rising by P10 today and closing just a shade lower than its all-time high of P1335.
AC finally reached P6, covering the gap at the same level. Oversold for over a week now, the issue could prove to be one of the leaders should the index wage a technical bounce at the end of the week. Buy.
MER lost a peso today, in line with the broad market's movements. The decline caused the issue to drop to an 8-year low.
MERB on the other hand lost P2 and is fast approaching attractive buying levels. We recommend buying the issue at P40 or lower.
LTDI, which has a short-term cap at P30, didn't get the chance to test it as the issue was weighed down by the gloom of the rest of the market. Furthermore, the company likewise reported disappointing results for the half.
August 1, 2001
Whatta Drop
A broad-based selling spree, led by a number of index heavyweights brought about a 29.18-point decline in the Phisix. We earlier reported that we see the index testing the 1300 psychological barrier soon, or perhaps even the 1288 level where a gap has yet to be covered, although we did not expect the intense selling pressure experienced by the market today.
Most of the credit should go to TEL, as it lost P45 and closed at P630, its intraday low. This level is already an acceptable buying level, although it may even hit P600, perhaps by tomorrow. The issue's nearest low was at P610, registered in early June. Before that, the last time TEL reached this low was in 1995. There are fears that TEL may again report below-par earnings as it did last year.
SMPH was also one of the major losers for the day, slipping 4.76% to P6. We suggest watching the issue as it nears oversold levels.
Combined foreign selling for the two issues reached P43mn, compared to the rest of the market which netted a net foreign selling figure of P36mn.
In marked contrast to the rest of the market, MFC reached another all time high, gaining a hefty P75 to P1585. SLC however is fast on its heels, rising by P10 today and closing just a shade lower than its all-time high of P1335.
AC finally reached P6, covering the gap at the same level. Oversold for over a week now, the issue could prove to be one of the leaders should the index wage a technical bounce at the end of the week. Buy.
MER lost a peso today, in line with the broad market's movements. The decline caused the issue to drop to an 8-year low.
MERB on the other hand lost P2 and is fast approaching attractive buying levels. We recommend buying the issue at P40 or lower.
LTDI, which has a short-term cap at P30, didn't get the chance to test it as the issue was weighed down by the gloom of the rest of the market. Furthermore, the company likewise reported disappointing results for the half.
Whatta Drop
A broad-based selling spree, led by a number of index heavyweights brought about a 29.18-point decline in the Phisix. We earlier reported that we see the index testing the 1300 psychological barrier soon, or perhaps even the 1288 level where a gap has yet to be covered, although we did not expect the intense selling pressure experienced by the market today.
Most of the credit should go to TEL, as it lost P45 and closed at P630, its intraday low. This level is already an acceptable buying level, although it may even hit P600, perhaps by tomorrow. The issue's nearest low was at P610, registered in early June. Before that, the last time TEL reached this low was in 1995. There are fears that TEL may again report below-par earnings as it did last year.
SMPH was also one of the major losers for the day, slipping 4.76% to P6. We suggest watching the issue as it nears oversold levels.
Combined foreign selling for the two issues reached P43mn, compared to the rest of the market which netted a net foreign selling figure of P36mn.
In marked contrast to the rest of the market, MFC reached another all time high, gaining a hefty P75 to P1585. SLC however is fast on its heels, rising by P10 today and closing just a shade lower than its all-time high of P1335.
AC finally reached P6, covering the gap at the same level. Oversold for over a week now, the issue could prove to be one of the leaders should the index wage a technical bounce at the end of the week. Buy.
MER lost a peso today, in line with the broad market's movements. The decline caused the issue to drop to an 8-year low.
MERB on the other hand lost P2 and is fast approaching attractive buying levels. We recommend buying the issue at P40 or lower.
LTDI, which has a short-term cap at P30, didn't get the chance to test it as the issue was weighed down by the gloom of the rest of the market. Furthermore, the company likewise reported disappointing results for the half.
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