The day's market - September 04 2007

WallStreet was closed for the Labor Day Holiday. The local equities market continued to look for leads. And as observed from yesterday that the upward trajectory momentum was already waning, the market opened lower upon the opening bell.

PSEi previous close - 3369.14 (September 03, 2007)

time--------------down------------------PSEi
9:31--------------4.87------------------3364.27 (open)
9:32-------------14.12
9:34-------------18.02
9:36-------------24.26-----------------3344.88

The 3350 level was broken. Lack of buying support became evident. Buyers were not aggressively coming into the market since yesterday.

9:37-------------26.83
9:39-------------30.03
9:42-------------32.51
9:43-------------33.84
9:44-------------35.98
9:45-------------39.01
9:46-------------40.88
9:58-------------42.24
10:08------------47.35
10:15------------51.82------------------3317.32

The 3320 level gave way next.

10:22------------45.73------------------3323.41

An attempt to stay above 3320 was shortlived.

10:36------------51.37
10:42------------52.25
10:43------------52.85
10:45------------54.37------------------3314.77

10:57------------53.67
11:04------------54.28
11:11------------54.28
11:14------------55.22
11:18------------59.61
11:19------------60.17------------------3308.97 (day's low)

The PSEi moved in a narrow range the rest of the trading session.

11:21------------55.77
11:23------------58.97
11:35------------54.62
11:44------------55.54
11:49------------56.04
11:54------------54.62
11:58------------53.21
11:59------------52.16
12:01------------56.84------------------3312.30 (-1.69%)
Market Close.

Advancers 22
Decliners 105

Valuue turnover PhP 3.286 bn
Cross transactions PhP 972 mn
Block Sales PhP 498 mn

If the US equities market fails to provide a boost and the PSEi does not manage to hold at the 3,300 level, the support is seen at the 3217-3267 levels. Investors confidence remains to be edgy. Even the favored second and thirdliners are taking backseat and were not leading any charge.

Among many technical analysts, it is significant that the 3400 level be breached and the market stay above it. Failure to do so and a break below the 3200 level may be seen as a formation of a head and shoulders chart pattern. If many of them looks at it this way, it could be a self-fulfilling prophecy as fund managers and investors may sell down when the chart is seen, even to be just likely heading that way. This selldown then drags the market lower and erode more; the still fragile investor confidence and would likely disregard any fundamentals. When this happens, the 3000 level would be the initial target.

A concern that may crop also up among investors in the near term is the coming promulgation of the decision on the cases against the former President Estrada. Any decision will likely spark outrage and protest from one of the contending parties. It is expected to come out in the next two weeks. It is hoped that any fall out will be shortlived and would not rattle the financial markets.

WallStreet also is still looking for clues on how the US Federal Reserve would act in its Sept 17 meeting in order to address the sub-prime lending woes still hounding them.

Sectoral Indices.
Holdings -3.46%
M-O -2.61%
Property -2.18%
Industrial -2.16%
Financial -0.56%
Services -0.45%

The Day's Top Gainers
ABAB: PhP 0.012; +9.09%
GO: PhP 0.31; +6.90%
ABA: PhP 0.010; +5.26%

The Day's Biggest Decliners
PA: PhP 0.105; -38.24%
ZHI: PhP 0.55; -15.38%
PRIM: PhP 0.80; -14.89%
FAF: PhP 0.88; -11.11%
AR: PhP 0.0010; -9.09%
NI: PhP 10.25; -8.89%