The day's market - May 07, 2007

The DJIA was up by 23.24 points on Friday and closed at 13,264.62. Again the local equities market took its cue from WallStreet and investors bought into the market upon the opening bell.

Foreign investors are showing their confidence in the country with Texas instruments and the Shimao group of China investing with billion dollar projects in the Philippines.


PSEi previous close - 3,278.48 (May 04, 2007)

time-------------up-----------------PSEi
9:31------------6.43
9:32------------8.09
9:36------------8.67
9:37------------9.29
9:39----------10.00
9:43----------11.86
9:46----------13.62
9:49----------13.93
9:50----------17.05
9:54----------18.19
9:55----------18.70
9:56----------19.02
9:57----------21.14---------------3299.62

The 3,300 level is challenged in the first half hour of trading. And unlike the past few trading days, the resistance was broken and the market kept its gains.

9:59---------25.44
10:00--------27.12
10:01--------29.09
10:03--------31.06
10:07--------31.76---------------3309.84

The market corrects after the fast advance and some investors locked in gains.

10:17--------26.94
10:25--------25.15
10:26--------23.88
10:41--------22.10

But aside from profit takers, the selling pressure has eased up as those who were wary of the elections already sold last week. The market sustained its advance.

10:49--------30.14
10;50--------31.86
11:08---------32.22
11:09---------34.19
11:14---------36.46
11:18---------39.03
11:19---------39.77
11:23---------41.82
11:26---------42.99
11:29---------43.75
11:31---------44.25
11:33---------44.57
11:35---------47.86----------------3326.34

The upper limit of the current resistance at 3,300 - 3,325 level is now tested. The market briefly pulls back, but rebounds at once.

11:47---------39.08
11:50---------42.30
11:52---------48.20

With 3,325 broken the market closes near its day high.

11:56---------49.54
11:58---------51.69
11:59---------52.40-----------------3,330.58 (day's high)
12:01---------51.41-----------------3,329.89
Market Close.

Advancers 60
Decliners 44

Value turnover PhP 4.887 bn
Cross transactions PhP 1.866 bn

Sectoral Indices
Financial +2.15%
M-O +2.01%
Services +1.83%
Property +1.18%
Industrial +0.72%
Holdings -0.14%

If the 3,300 - 3,325 finally holds up as a strong support, the market may be carried by momentum to higher levels and eventually challenge its all time high levels (at around 3,420).
Selling pressure has lightened and investors are more confident in taking positions ahead of Monday's (May 14) elections. New immediate trading range is seen at 3,300-3,350. Hopefully, the DJIA also will not suffer sudden unexpected drops.