Foreign markets selldown triggers panic in the Philippine Stock Market

Upon opening bell, investors were quick to the trigger and sold down their shares. It was just pure panic selling in the first ten minutes

PSEI previous close 3331.29 (February 27, 2007)

time--------down-----------PSEi-------% down
9:31-------132.37---------3199.06------3.97%
9:32-------270.29---------3060.90------8.12%
9:33-------279.66
9:34-------312.94
9:38-------333.39---------3000.90
9:39-------338.48---------2992.81----10.16%

The market quickly hits bottom just below the 3000 level. Within ten minutes, the market fell by 10%. The US DJIA market was down by just 3.29% and the major asian markets were down by just the same percentage in the morning trade. The market quickly rebounds and regains some ground to take advantage of bargains.

9:42-------306.49----------3024.80
9:44-------300.38
9:46-------292.20
9:54-------253.72
9:58-------239.14
10:02------230.34---------3100.95

The market has recovered by about 100 points after the next twenty minutes. The market now moves in a narrow range in the next hour

10:11-----213.37
10:12-----211.92
10:19-----213.57
10:25-----217.02
10:25--------------PhP 48.59 to $ 1.00
10;29-----219.51
10:30-----224.26
10:52-----215.12
10:56--------------PhP 48.59 to $ 1.00
11:07-----210.74----------3120.55

The technical bounce hits a resistance and bargain hunters / daytraders were quick to take profits as the selling mood still prevailed.

11:17-----226.73
11:20-----228.77
11:21-----230.70
11:23-----231.68----------3100.21
11:24-----232.12
11:25-----235.18
11:28-----237.86
11:30-----240.86
11:36--------------PhP 48.59 to $ 1.00
11:37-----243.03
11:47-----255.69
11:55-----256.89
12:01-----263.84---------3067.45-----7.92%
Market Close.

The market suffered one of; if not its worst one day decline. This was not due to any change in the country's economic fundamentals. But because of globalization, financial markets feel these sudden bouts of huge swings.

The decline of almost 8% may have been an over reaction and a rebound is expected. At this point, (3:20 pm MLA time) the DJIA futures is already up by 96 points, and the following major asian markets have declined by less than 3.0%
Japanese Nikkei -2.85%
HongKong HangSeng -2.04%
South Korean Kospi -2.56%

The steep drop should have been an opportunity for bargain hunting and if the consolidation persists if overseas markets remain weak, then an opportunity presents itself. The 3000 level seems to be a strong support. Immediate resistance is at the 3,100 - 3,120 level.

Value turnover for the day was a whopping Php 12 billion with almost half in block and cross transactions.

All sectors were in the red.
M-O -11.21%
Property -8.70%
Services -8.34%
Holdings -7.66%
Financial -6.46%
Industrial -5.76%

Gainers 4
Decliners 159


There was no index issue gainer.
The biggest index issue decliners for the day:
LC -15.15%
LCB -13.16%
PX -12.77%
BPC -12.50%
DMC -12.16%
SMPH -12.00%
BEL -11.54%
JGS -10.91%
JFC -9.91%
TEL -9.02%