The Philippine Stock Market - July 8, 2009

Dow Jones Industrial Average (DJIA) Summary
Index Value: 8,163.60
Trade Time: July 7
Change: Down 161.27 (-1.94%)
Prev Close: 8,324.87
Open: 8,324.95
Day's Range: 8,154.38 - 8,326.31

The DJIA fell by around 2.0% and closed near its low.
The local equities market traded with a downward bias because of the big decline in WallStreet. The Philippine Stock Exchange Index (PSEi) continue to remain resilient and limits its losses once again.

**Philippine inflation within BSP forecast; better than market expectations
Local inflation eased to its slowest pace in 22 years
COMMENT: CPI for June 2009 registered at 1.5%; just within BSP's forecast 1.1% to 2.1% range
This compares to 3.3% in May and is lower than market expectations of 1.75%
Comparable to April 1987 which saw a rise of +1.0%
Attributed to fall in oil and commodity prices from last year.
However, we underestimated the rise in Services which accounts for 16% of CPI computation This resulted in higher than projected CPI rise for the month
Essentially, gives the BSP headroom to cut rates further (likely 25bps) this Thursday
Inflation averaged 5% in the first half, still well within BSP target full year
The BSP is targeting inflation of 2.5-4.5 percent in 2009
Low rates continues to keep investors in the market

** From SB Equities Research


PSEi previous close - 2471.76 (July 7)

time-----------down-----------PSEi
9:31-----------8.98----------2462.78
9:32----------10.40
9:36----------15.58
9:38----------19.37
9:42----------21.10
9:46----------24.08----------2447.68 (day's low)

9:50----------21.55
9:59----------18.48
10:05---------14.30

10:13---------15.24
10:17---------10.51----------2461.25

10:23---------12.05
10:27---------12.38
10:32---------13.32
10:37---------14.89
10:42---------16.64
10:46---------18.69---------2453.07

10:53---------17.90
11:03---------15.11
11:05---------13.53
11:08---------10.96
11:14---------10.67
11:15----------8.59---------2463.17

The market moves in a narrow range for the rest of the trading session.

11:21---------9.48
11:26---------8.10
11:29--------10.89
11:36---------9.75
11:40--------11.86
11:44--------10.00
11:50--------13.17
11:55---------8.62
11:59---------5.37
12:01---------9.77---------2461.99 (-0.40%)
Market Close.

Value turnover: PhP 3.412 bn
Cross transactions: PhP 623 mn
Block Sale: 4,601,676 shs ALI @ PgP 8.25 = PhP 37.966 mn
---------------579,090,000 shs @ PhP 3.25 = PhP 1.882 bn

Advancers 42
Decliners 44
Unchanged 54

Sectoral Indices.
Holdings -1.07%
Services -1.03%
Property -0.88%
Financial -0.03%
M-O +0.34%
Industrial +0.89%

The Day's Top Gainers:
LIB: PhP 2.95; +1375.00%***
PRIM: PhP 0.54; +50.00%
APM: PhP 0.0085; +21.43%

***The trading band limits for LIB was lifted because it just resumed trading today. It last traded on August 16, 2005 when it closed at PhP 0.20.

The Day's Biggest Decliners:
PHES: PhP 0.21; -12.50%
CEU: PhP 6.10; -7.58%
MAB: PhP 0.013; -7.14%

At mid-day:
Asian equities markets were down.
The Philippine peso was at PhP 48.384 vs US$ 1.00.


CLOSING PRICES OF SELECT STOCKS (as of July 08, 2009):
ABA: PhP 1.00
ALI: PhP 8.20
DGTL: PhP 1.32
EDC: PhP 3.85
EIBA: PHP 0.26
FLI: PhP 0.71
GEO: PhP 0.61
GOB: PhP 0.17
JOH: PhP 1.20
LOTO: PhP 10.00
MEG: PhP 0.97
MPI: PhP 5.70
MUSX: PhP 0.105
PAX: PhP 2.44
PX: PhP 7.60
SPH: PhP 2.80
SUN: PhP 0.42
TA: PhP 0.94
UW: PhP 0.095
V: PhP 1.04
WEB: PhP 0.0525