The Philippine Stock Market falls more than 6% and breaks below 3000

As the Dow Jones Industrial Average (DJIA) posted another triple digit drop of 167.45 (-1.29%) points and broke below the 13,000 level (closed at 12,861.47), the local equities market shifted to panic mode. There was an overwhelming flood of selling activity as investors sought to cash out.

The sub-prime loans debacle has spread to financial institutions and its extent still gives uncertainty to financial markets. Asian markets were down as world equities markets suffered from this phenomenon which is becoming global.

The day saw a continous and steep downward spiral of the Philippine Stock Exchange Index (PSEi) as emotional selling ruled the market.


PSEi previous close - 3130.34 (August 15, 2007)

time---------------down---------------PSEi
9:31--------------23.93--------------3106.41
9:32--------------25.45
9:33--------------30.28--------------3100.26
9:34--------------30.78--------------3099.56

A weak attempt was made to stay above 3100.

9:35--------------24.76--------------3105.58

But sellers just continued to execute their orders.

9:36--------------33.65
9:38--------------36.41
9:39--------------38.57
9:40--------------40.70--------------3089.64

The 3090-3127 chart gap was closed. But this does not stop the freefall that followed.

9:43--------------43.20
9:45--------------46.35
9:47--------------48.54
9:48--------------48.87
9:49--------------49.38
9:50--------------54.47
9:51--------------59.93
9:52--------------61.62
9:53--------------62.29
9:54--------------65.58
9:57--------------70.81
9:59--------------74.73
10:00-------------77.69
10:01-------------80.32
10:02-------------88.56
10:03-------------91.34
10:05------------101.29
10:07------------103.05
10:08------------106.26
10:10------------107.59
10:12------------112.82
10:14------------113.55
10:15------------114.75
10:17------------120.63
10:18------------121.47
10:19------------122.04
10:21------------126.31------------3003.73
10:23------------135.71------------2994.63

The key 3000 level was broken. The market tries to stay near this level in the next hour.

10:24------------136.07
10:27------------134.03
10:29------------132.37
10:30------------131.58------------2998.76

10:32------------136.74------------2993.60
10:34------------133.52
10:39------------128.09
10:41------------127.58------------3002.76

10:42------------132.74
10:48------------130.01
10:55------------133.70
11:01------------131.65
11:05------------129.90
11:10------------135.00
11:15------------133.98
11:16------------128.22
11:20------------135.59
11:23------------138.31-------------2992.03

Advancers 2 Decliners 143. The market resumed its downward trajectory.

11:25------------141.91
11:26------------142.26
11:27------------142.86
11:30------------144.68
11:31------------146.22
11:32------------146.71
11:36------------150.50
11:37------------153.08
11:38------------155.19
11:39------------156.37
11:41------------157.82
11:48------------165.38--------------2965.46

This is the lowest level hit since March 6, 2007

11:50------------171.59
11:52------------173.59
11:53------------174.21
11:54------------177.37
11:57------------183.44
11:58------------185.31
11:59------------186.00
12:01------------188.03-------------2942.31 (-6.01%)
Market Close.

The market just hit year low-levels. The year-end 2006 close of the PSEi is at 2982.54
The PSEi is now almost 23% down from its high at 3,820 reached just a month ago (July 13, 2007). In comparison, the DJIA is just down more than 8% from its high of 14,020 on July 17, 2007. The local equities market is down nearly 10% in the past two trading days alone.
Support is seen at the 2880-2900 level.
There are several chart gaps left opened when the market dropped the past two days. One is at the 3222-3257 levels and the other one at the 3106-3124 levels was opened at this mornings trade.
If WallStreet stabilizes, a bounce may be expected in the near term. Select second and thirdliner issues which has completely retraced may provide opportunities.

Advancers 6
Decliners 143

Value turnover: PhP 4.984 bn
Cross transactions: PhP 1.222 bn

Sectoral Indices again dropped steeply across-the-board.
M-O -8.31%
Services -7.21%
Industrial -6.21%
Property -5.37%
Holdings -4.20%
Financial -4.17%

TOP GAINERS:
1. ATNB: PhP3.00; +9.09%
2. CSB: PhP23.25; +4.49%
3. ATN: PhP2.75; +3.77%

WORST DECLINERS:
1. KEP: PhP1.40; -21.35%
2. SFI: PhP0.46; -20.69%
3. RLT: PhP0.37; -19.57%
4. AJO: PhP0.070; -17.65%
5. FED: PhP9.70; -17.45%
6. KPHB: PhP2.00; -16.67%
7. REG: PhP1.60; -15.79%
8. ISM: PhP0.027; -15.63%
9. MRC: PhP0.50; -15.25%
10. MIC: PhP3.75; -14.77%
11. WIN: PhP0.29; -14.71%
12. APC: PhP0.56; -13.85%

VALUE TURNOVER:
1. EDC: PhP595 mn (close: PhP6.00; -1.64%)
2. SMPH: PhP 286 mn (close PhP9.50; -5.00%)
3. TEL: PhP244 mn (close PhP2,270.00; -7.91%%)

VOLUME TURNOVER:
1. OV: 1,650 mn (close: PhP0.017; -5.56%)
2. OPM: 558 mn (close PhP0.016; -11.11%)
3. OM: 406 mn (close PhP0.012; unch)