The December 3, 2007

Market Commentary

Time flies when you're enjoying what you're doing. It's already December and there are only fewer than 20 trading days left in 07. Up or down who can say? The point is, you have to make the most of what opportunity is left in the year. If the US heads into recession (which is starting to be highly likely), this will not bode well for equities.

The markets are likely to head north this week with an expectation of another rate cut from the FED on its last meeting for the year. I've seen a news article today in the Inquirer that mentions that our own BSP would likely follow suit to protect the peso. The BSP's defense of the peso has put them in the red this year. The PSEi chart points to a stronger close this week. We might have a year end bang after all. But alas, it may also be the time to get out of the market and watch from the sidelines.

After a knee jerk reaction last week to a coup attempt the markets today recovered albeit with subdued volume from the 29th. We were up at one point close to 60, but we closed lower (intraday, but up) +48 points (1.35%). We are now above 3,600. All sectors were up with the exception of Services - primarily due to TEL. The best indicator of a bull market is that all sectors are up. Hopefully this blip won't mean anything for the week.

We seem to be heading towards a bullish week this week, based on the PSEi chart. Sorry folks, can't post it here. Even if I did, the image quality would look as beautiful as say, crap.

Foreign Houses:
From the Report of PSEi, we were net foreign selling today.
DEU -691M
CLSA -46M
MACQ +308M
JPM +60M
UBS -201M
ABN +144M
DBP -12M
PEP -244M

I am adding PEP here. PEP is considered a foreign broker as I have realized lately.

STOCK

Even though gold corrected majorly, LC was up 10% , 9% for the A and B shares, respectively. APX was up relatively lower by +3.08%. PX was up only 1%.

Surprise, surprise, PA is up to 0.26, and near the resistance of 0.27. If it breaks out, the near term target is somewhere in the 0.30 - 0.37 range. Watch out for this guys.

Other Stocks:

EDC is now at 7.10. Remember, FGEN bought this at 9.00
ELI a rights offering at Php 1.00, 1 for 3 shares held.
OV. I don't have news on this, but this could be a solid long play.
FGEN. We was right, it's now back up at 59.00.
Other beneficiaries would likely be FPH. FPH is a good play, the price chart is rising, RSI is rising. However, the MACD is telling us that this could only be a rally, not a true rebound.
* EDC, ELI, OV, FGEN and FPH are not trading buys. If you have been in the market for about 3-6 months, you will realize that basura stocks are better suited for traders.

STUCK

It's a good thing the PSEi wasn't.

SUCK

AGI. On a day that MEG went up, its mother company fell.