The day's market - April 17, 2007

The market continued its surge from yesterday and got a big boost from the advance in the US equities market, the continuing strength of the peso and the rising metal prices.

PSEi previous close - 3267.86 (April 16, 2007)

time---------------up------------------PSEi
9:31--------------9.34
9:36-------------20.68
9:37-------------23.25
9:40-------------31.73----------------3299.59

After just 10 minutes of trading, the market already tested the 3,300 immediate resistance level. Local equities continued its advance as liquidity poured in equity investments and investors take positions.

9:45-------------34.54
9:46-------------40.85
9:48-------------42.81
9:53-------------47.02
10:00-----------47.87
10:10-----------47.93

Another buying binge pushed the market higher and closed the gap in the chart at the 3,325 level.

10:18-----------60.28 ---------------3328.14
10:19-----------64.92
10:37-----------54.30
10:38-----------52.79
10:43-----------57.23
10:45-----------61.53
10:50-----------57.71
10:55-----------60.51
10:58-----------62.40
11:00-----------63.11
11:02-----------65.54
11:03-----------67.51
11:05-----------67.92--------------3335.78 (day high)

Profit taking in the last hour of trading prevented the market to close near its high. the market has now advanced more than a hundred points since yesterday.

11:17-----------60.94
11:26-----------58.97
11:43-----------54.24
11:49-----------52.41
12:01-----------50.31-------------3318.17
Market Close.

Value turnover swelled to PhP 6.278 bn (with PhP 2.59 bn in cross transactions).

Advancers 64
Decliners 33

Sectoral Indices
Services +3.75%
Holdings +0.83%
Industrial +0.78%
M-O +0.72%
Property +0.36%
Financial +0.03%


The immediate target resistance has been achieved in just two days. Momentum is seen to carry the market higher and the PSEi is likely to test its multi year high of 3417. The new immediate resistance is at the 3,350 -3,380 level.
A consolidation at the 3,300 level is possible as the index has moved up too fast too soon and some investors may opt to take profit. And again, any sudden steep slides in the US and major asian markets; and even in metal prices, may be taken as an excuse for a correction.
With today's jump in the local stock market, a new gap at at the 3267 level has been left in the charts. A breakdown below the 3,300 level may signal a move to close the opening.