The Philippine Stock Market - September 30, 2008

Dow Jones Industrial Average(DJIA) Summary
Index Value: 10,365.45
Trade Time: Sept 29
Change: Down 777.68 (-6.98%)
Prev Close: 11,143.13
Open: 11,139.62
Day's Range: 10365.45 - 11139.94

WallStreet suffered the worst point drop ever for the DJIA (but percentage wise is nowhere close the 22.6% decline in the 1987 crash).

****Several years ago; some researchers (from the New York University and Boston University) derived a complex formula calculating how often drops of a particular magnitude will occur over long periods of time (measured in centuries). According to their formula, a decline of 7% , on average occurs every 4.7 years. Before this, the last big drop of around this magnitude was almost 7 years ago (Sept. 17, 2001).

Investors cashed out as the US financial bailout plan was rejected in the US Congress by a vote of 228-205.

The meltdown in WallStreet was immediately felt in the local equities market. But the Philippine Stock Exchange Index (PSEi) was also able to recover at once; as the Philippine Stock Market showed its resiliency.

PSEi previous close - 2607.58 (Sept 29)

time-----------down-------------PSEi
9:31---------146.61----------2460.97

Market heavyweight TEL opens at PhP 2540 from a previous close of PhP 2685. The immediate support at the 2510 level.

9:35---------160.39----------2447.19 (day's low)

The market support at this point is at 2401 and the PSEi is down by 6.15%.

9:54---------106.52----------2501.06

The PSEi however is able to bounce back off its lows and goes back above the 2500 level.

9:56---------100.25
9:59----------92.21----------2515.37

The PSEi is now above the 2510 level. Investors and bargain hunters gain confidence.

10:00---------85.71
10:01---------78.97
10:07---------73.42

10:15---------62.55
10:16---------60.77
10:18---------57.68----------2549.90

The rally loses some steam and the runup takes a breather.

10:27---------56.68
10:32---------63.03
10:35---------66.91
10:36---------68.12
10:40---------70.02
10:45---------73.18
10:51---------77.33---------2530.25

10:56---------71.15
11:03---------67.85

The market continues its remarkable recovery in the last hour of the trading session.

11:10---------64.35
11:17---------62.96
11:26---------59.89---------2547.69
11:46---------53.49
11:52---------43.01
11:56---------39.90
11:58---------34.46
11:59---------31.55---------2576.03 (day's high)
12:01---------37.93---------2569.65 (-1.45%)
Market Close.

Value turnover: PhP 3.023 bn
Cross transactions: PhP 857 mn
Block Sales: 63100 shs TEL @ 2588.66 = PhP 163.34mn
--------------10000 shs TEL @ 2618.57 = PhP 26.185 mn

Advancers 24
Decliners 95
Unchanged 30

Sectoral Indices:
M-O -2.97%
Property -2.95%
Industrial -2.72%
Financial -1.15%
Holdings -1.14%
Services -0.0073%

The Day's Top Gainers:
BCI: PhP 9.70; +49.23%
PHES: PhP 0.215; +34.37%
IRC: PhP 0.72; +20.00%

The Day's Biggest Decliners:
OMW2: PhP 0.0060; -14.29%
CEI: PhP 0.0625; -13.79%
UNI: PhP 0.11; -12.00%

At mid-day:
Asian equities markets were expectedly down.
The Philippine Peso was at PhP 47.360 vs US$ 1.00.

There will be NO TRADING tomorrow in view of Proclamation N0. 1625, declaring Wednesday, October 01, 2008, as a regular holiday throughout the country in observance and celebration of Eid'l Fitr (Feast of Ramadhan).