The Philippine stock market limits losses despite the nearly 200 point drop in WallStreet - June 08, 2007

The DJIA fell 198.94 points to close at 13266.73 while the tech laden Nasdaq declined by 45.80 points to end at 2541.38
PLDT ADRs were down by $1.21.
Gold prices were down nearly $10 an ounce
Asian stock markets were also down in early trading

PSEi previous close - 3528.79 (June 07, 2007)

time----------------change-------------------PSEi
9:31----------down 21.75
9:32----------------25.17------------------3503.69

The 3,500 support was immediately tested. When it broke, the market went into a freefall.

9:33---------down 36.67
9:34---------------40.15
9:35---------------53.63
9:36---------------58.95
9:37---------------59.66-------------------3469.13

The peso was again weaker and was at PhP 46.48 vs $ 1.00

9:38---------------56.06
9:39---------------55.85
9:40---------------59.04
9:41---------------59.94-------------------3468.85 (day's low)

After this initial panic subsided, investors began buying up bargains.

9:42---------------54.76------------------3474.03
9:43---------------52.29
9:53---------------51.07
9:56---------------50.54
9:58---------------44.72------------------3484.07

Sensing that selling pressure has abated, investors began to regain confidence and the market continued to recover from its losses.

10:01--------------36.49------------------3492.30
10:02--------------35.99
10:09--------------29.96
10:11--------------29.37
10:19--------------28.49------------------3500.30

The market hurdled and stayed above the 3500 level.

10:21--------------27.37-------------------3501.47
10:22--------------26.72
10:23--------------22.42
10:30--------------22.24
10:34--------------17.76
10:44--------------15.29
10:49--------------13.43
11:00--------------11.96

The peso at this point somehow strengthened to PhP 46.345 to $ 1.00

11:16--------------10.93
11:18---------------7.63--------------------3521.16

The Philippine Stock Exchange Index (PSEi) showed its resilience as it goes above the 3,520 level.

11:21-----------down 2.34------------------3526.45

The market even had the strength to go higher than its previous close.

11:22------------up 3.08
11:27---------------3.50---------------------3532.29 (day's high)

The index now just consolidated above the 3,520 level the rest of the trading day.

11:28------------up 0.45
11:32---------down 2.56
11:37----------------1.75
11:38------------up 0.28
11:41---------down 5.87
11:43---------------3.85
11:45---------------0.99
11:51---------------6.48
11:53---------------1.21
11:54---------------5.77
11:56---------------8.66----------------------3520.13
11:58---------------6.00
11:59---------------2.53
12:01---------------2.06----------------------3526.73 (-0.06%)
Market Close.

Advancers 57
Decliners 56

Value turnover PhP 5.005 bn
Cross transactions PhP 1.600 bn

Sector indices
Services +1.16%
Holdings +0.15%
Financials -0.29%
M-O -0.39%
Property -0.84%
Industrial -1.35%

The local equities market showed its underlying strength as it recovered from a big loss early in the trading day. The second and thirdliner stocks continue to provide investors opportunities despite the past day's correction/consolidation. The day's gainers even managed to outnumber the decliners. The PSEI managed to stay above the 3,500-3,520 support.

The US DJIA is now down by around 400 points in the last three trading days. The local market will be closed on Monday as the June 12, Philippine Independence Day Holiday was moved to June 11.

Closing prices of select stocks - June 08, 2007
ABA - PhP 0.013
ALI - PhP 16.75
AR - PhP 0.015
DGTL - PhP 1.52
EIB - PhP 0.53
LOTO - PhP 16.25
MPI - PhP 4.10
NRCP - PhP 4.30
SUN - PhP 0.78
V - PhP 1.64
WEB - PhP 0.0525



*From the news papers.
The Gross International Reserves (GIRs) of the Philippines; went up by $700 mn to $25.8 bn at the end of May 2007. It is now only $200 mn short of the full year GIR goal for 2007 of $26 bn.