The Philippine Stock Market - July 03, 2008

Dow Jones Industrial Average(DJIA)Summary
Index Value: 11,215.51
Trade Time: July 2
Change: Down 166.75 (-1.46%)
Prev Close: 11,382.26
Open: 11,382.34
Day's Range: 11214.37 - 11434.12

The US equities market tried to hold its ground in the first hour of trading, but with Oil hits a new high above the $144 a barrel, the DJIA steadily declined. A strong sell-off late in the session had the DJIA close near its low and deeper in a bear market (defined as 20% below its 52-week high).

The local equities market immediately followed this lead. The Philippine Stock Exchange Index (PSEi) immediately fell lower and was down more than a 100 points just in the first half hour of trading. The PSEi touched new 22 month low levels but bargain hunting cut losses by almost half.

PSEi previous close - 2393.90 (July 02)

time-----------down------------PSEi
9:31-----------28.95-----------2364.95
9:32-----------33.91
9:33-----------39.64-----------2354.26

The lower range of the support (2359) at the Sept 12-13, 2006 lows, was easily broken.

9:34-----------41.15
9:36-----------44.17

The 2350 level was easily broken and the market heads deeper. Panic selling was evident as the market experiences a steep drop.

9:37-----------48.79
9:38-----------53.25
9:39-----------55.75
9:40-----------58.85
9:41-----------61.60
9:43-----------66.28
9:45-----------70.98
9:46-----------74.67
9:47-----------75.26
9:48-----------77.56
9:49-----------78.78
9:50-----------82.24
9:52-----------82.45
9:53-----------85.32
9:54-----------87.36
9:55-----------88.90
9:56-----------90.06-----------2303.84
9:57-----------95.97-----------2298.18

The 2300 level is tested.

9:58-----------94.50
9:59-----------93.68-----------2300.22
10:00----------95.11
10:01----------96.54
10:02---------100.01
10:03---------103.53
10:04---------104.69-----------2289.21 (lowest since August 28, 2006)
10:09---------104.63
10:11---------100.61
10:13----------98.77
10:14----------95.90-----------2298.00

As the sell-off eases, bargain hunting sets in. The PSEi goes above the 2300 level and recovered some of its losses.

10:18----------88.74-----------2305.16
10:19----------85.53
10:23----------83.27
10:24----------81.69
10:30----------80.97
10:31----------76.57
10:34----------75.13
10:38----------72.05
10:39----------71.66
10:40----------70.86
10:42----------64.47
10:43----------61.33
10:44----------59.27
10:45----------57.83
10:46----------54.19
10:48----------53.83
10:50----------53.03
10:51----------51.35
10:52----------49.51
10:53----------47.60-----------2346.30

After a quick bounce wherein the market losses were cut by half; the PSEi consolidates in the next hour.

10:54----------48.30
10:55----------47.28
11:03----------46.47-----------2347.43
11:04----------49.45
11:05----------50.25
11:07----------51.98
11:12----------48.11
11:18----------51.58
11:21----------50.85
11:23----------52.54-----------2341.36
11:28----------50.20
11:31----------49.54
11:36----------50.49
11:41----------50.08
11:46----------51.69
11:50----------48.22
11:52----------48.22-----------2345.60

Trading was halted due to a computer glitch. Market trading resumed at 12:19-12:25. Market run-up was set at 12:26-12:35.

12:21----------44.01
12:22----------47.90
12:23----------49.92
12:24----------53.70
12:25----------54.94
12:26----------54.06-----------2339.84 (-2.26%)
Market Close.

A chart gap was opened at the 2393 (yesterday's close/low) and 2364 (today's open/high) levels.

Advancers: 18
Decliners 95
Unchanged 36

Value turnover: PhP 2.308 bn
Cross transactions: PhP 784 mn
Block Sales:
11,940 shs of TEL at PhP 2360 = PhP 28.178 mn
36,627,600 shs of SMCB at PhP 50 = PhP 1.831 bn

Sectoral Indices were all in the RED.
Property -4.71%
M-O -2.81%
Holdings -2.71%
Industrial -1.58%
Services -1.34%
Financial -1.11%.

The Day's Top Gainers:
MFIN: PhP 4.75; +26.67%
PMX: PhP 4.00; +25.00%
IMP: PhP 17.00; +13.33%

The Day's Biggest Decliners:
AB: PhP 2.10; -40.00%
POPI: PhP 0.25; -24.24%
AR: PhP 0.005; -16.67%

At mid-day:
Asian markets were mostly down.
The Philippine Peso was at PhP 45.249 vs US$ 1.00.