November 12 Report

Market Commentary

Oh the pain of having to make a report, especially on a down day like today. Our market corrected by -85 points (-2.30%), tracking the Asian benchmark indexes - Tokyo (-2.54%), Hong Kong (-3.88%) , Singapore (-2.46%). Hong Kong has been strongly hit these past few days. China bubble exploding? Maybe it's because they've made a new high recently, but the pullback has been stronger.

Of the top 20 on the actives list, ALI and MWC showed resilience and remained flat from the 9th. MWC has been showing strength in this troubled market. It's a good sign. However, a trader can't make money on a stock that is stuck.

Surprisingly, Deutsche was a net buyer with a value of +205M. For the other big foreign players, they were net sellers. CLSA was another net buyer at +22M worth. Let's see what were they buying?

Deutsche:
SM, TEL, AC, PX and ALI

CLSA:
MWC, EDC, MEG, FLI and FGEN

Local big time player, PEP or Philippine Equity Partners, the managers of the Philequity Fund,
bought the following:
ALI, GMAP, FGEN, MER and EDC

The biggest sectors hit were financials and mining / oil. Financials were due to the negative bias of people on the sector. Mining/Oil is due to extensive profit taking, as well as big corrections in PX, GEO and SCC.

So far, ALI has been showing resilience. I'm just scratching my head over at MEG. Its earnings was impressive (although I'm not a finance guy). The current price is really temptingly delicious to buy in. Chart-wise, well it's unwise at this point. The DOW has to make a rebound tonight.

All signs are pointing to a BSP rate cut - benign inflation as well as a tempered money supply growth. This should bode well for our local market, at least in the near term. Looks like the year end bang will just be a year end whimper for the stock market this year. Tsk tsk.

There are mixed projections as to how the PSEi will end this year, 3,500, 3,800, 4,000. If we close at 4,000, and Citisec recently said that by June 2008, the index would be 4,200, does that mean we won't have any upside by next year?


STOCK

I think it's better not to trade at this moment. If you want to buy, look for bargains in MEG, and FGEN. Don't shop around for basuras just yet.

STUCK

That's me.

SUCK

I hope after tonight, I won't have to put the DOW right here.

The Dollar! It's fallen to the Yen.

GEO. I wanted to day trade earlier (I could've made some money. As well as LC, buy at 0.40, sell at 0.41. But of course, I'm a chicken in these broadbased selling days, so I stayed on the sidelines) GEMINI fans are probably on the edge of their seats once again.

Good luck, and pray hard this time.