The day's market - October 22, 2007

As expected, the market fell heavily as all indicators over the weekend pointed to a deep downward movement.

PSEi previous close - 3819.75 (October 22,2007)

time---------down-----------PSEi
9:31---------66.71---------3753.04
9:32--------166.02---------3653.73
9:31--------185.90
9:34--------191.71
9:35--------193.75---------3626.00 (day's low)

The first five minutes of trading was marked by panic selling as investors rushed to cash out given the situation that unfolded over the weekend.

9:37--------187.58
9:39--------179.79
9:41--------169.22

9:43--------171.16
9:44--------172.57

9:49--------165.87

After a few moments after the initial panic subsided, bargain hunters stepped in.

9:52--------160.89
9:55--------155.12
10:02-------152.78
10:06-------147.83
10:07-------142.98
10:09-------140.38
10:10-------138.73
10:12-------133.24

10:15-------139.15
10:20-------131.64
10:24-------130.82
10:34-------128.10--------3691.75

The recovery was weak as sellers once more kept the market from going higher. Investors were very cautious, and quick in unloading their portfolio as they preferred to be liquid.

10:36--------133.71

Advancers 3 Decliners 135

10:47--------138.31
11:03--------143.88
11:09--------148.54

11:15--------137.24
11:31--------141.18
11:37--------144.62

11:45--------139.11
11:50--------144.78
11:56--------135.19
11:57--------142.39
11:58--------154.70
12:01--------151.88----------3667.87 (-3.98%)
Market Close.

Advancers 5
Decliners 144

Value turnover: PhP 5.604 bn
Cross transactions: PhP 1.518 bn

Though the market was down nearly 4.0%, panic selling was tempered somehow and was evident in just the first few minutes of trading wherein sellers sold at whatever price buyers were willing to buy. It was not really a Black Monday for us. It was also more of a Blue Monday. Last Friday's buyers were beaten black and blue and monitors turned bloody as decliners (and sell-downs) were strewn across-the-board.

As trading progressed, bargain hunters were willing to step in for opportunities to buy stocks at lower levels despite the obvious selloff. However, they were also quick to take profits and sellers still prevailed.

A lot of uncertainties remain in the market. WallStreet is still prone to a deeper correction, Oil prices are still at their record highs; and the Friday's blast at the Glorietta mall is still under investigation.

The market correction (after the very strong and very fast runup to new record highs) that some investors (including us) have been waiting for is underway and will likely persist until November. Next week, trading will be cut short. October 29 will be suspended to give way to the Barangay Elections and the weekend will be for the All Saints and All Souls Day.

But will this pullback still be a healthy one and would just be a prelude to a December yearend rally to the 4,000 level? We hope so. We hope too, that this not the beginning of the end.


Sectoral Indices were all down.
M-O -6.65%
Property -5.63%
Financial -4.33%
Holdings -4.25%
Industrial -3.62%
Services -2.96%

The Day's Only Gainers:
PCKH: PhP 9.00 +5.88%
FFI: PhP 8.00; +3.90%
LSC: PhP 1.26; +3.28%
ATS: PhP 1.54; +2.67%
VLL: PhP 5.90; +1.72%

The Day's Biggest Decliners:
ATNB: PhP 1.96, -39.69%
KPH: PhP 1.80; -21.74%
KPHB: PhP 1.80; -18.18%
PAL: PhP 7.00; -17.65%
FJPB: PhP 1.50; -16.67%
MIC: PhP 6.70; -16.25%
ACR: PhP 0.75; -13.79%
OMW2: PhP 0.095; -13.64%
OM: PhP 0.013; -13.33%
SUN: PhP 0.60; -13.04%