The Philippine Stock Market bounces back up by 4%

Investors were quick to realize that the previous days' panic selling was overblown. The market zoomed up upon the opening trades and it stayed on the high side. China recovered the day after its massive sell-off, major asian markets had limited losses (unlike the overdone drop of almost 8% that we had) and the US DJIA close higher by 50 points (even if the new housing sales data indicated that it fell by 16.6%).

PSEi previous close 3067.45 (February 28, 2007)

time---------up--------PSEi
9:31-------95.34------3162.79
9:34------101.74
9:38------114.29
9:40------118.91
9:41------129.41

After 10 minutes, the market breaks the 3,200 level.

9:42------135.12-----3202.57
9:43------134.16
9:44------139.92
9:45------142.03
9:46------147.00
9:47------148.89
9:50------141.67
9:52------147.22
9:59------147.25
10:01-----143.76
10:02-----152.89-----3220.34

The market hits the days' high in the first thirty minutes of trading. The upside was capped as profit takers (those that bought yesterday) started to sell.

10:03-----144.98
10:06-----138.24
10:10-----137.20
10:16-----134.27
10:18-----130.14
10:20-----125.60
10:23-----117.87
10:26-----120.16
10:32-----114.77
10:40-----112.87
10:55-----109.31
11:02-----104.86
11:06-----101.83
11:09-----100.27
11:16------98.57-----3166.02

The market tested its days' opening level and at this point, is now more than 50 points below its days' high.

11:23-----101.59
11:24-----104.59
11;26-----106.69
11:36-----116.13
11:50-----119.53
11:54-----121.65
11:57-----123.47
12:01-----122.67-----3190.12
Market Close.

With the market opening strong, there were few opportunities to ride the market's rebound. The few and the brave who got into the market yesterday were the ones who had a field day. If investors believe in the underlying strength of the economy and our financial markets, these sudden swings and glitches should be cues to step in the market.


Today, all sectors regained ground.
Property +4.62%
Services +4.31%
Financial +3.53%
Holdings +3.44%
M-O +2.91%
Industrial +2.24%

Top 10 index gainers
DMC +10.77%
BPI +8.06%
BPC +7.14%
SMPH +6.82%
ALI +6.56%
LCB +6.06%
ABS +5.49%
HLCM +4.88%
GLO +4.63%
BDO +4.50%

There were only two index issue decliners
FLI -1.19%
SMC -0.78%


Advancers heavily outnumbered decliners 105 to 22.
Value turnover was at Php 5.2 bn.

At this point, the market's resistance is at 3,200 - 3,220. For the short term direction, investors now await if there will be furhter reverberations from the previous day's drop or if everything has already stabilized especially in the US and Chinese equities markets.

But all in all, the correction was a welcome one, but as mentioned was severely overdone. Fundamentals, as of now remain.