September 3 The Philippine Stock Market Daily Review Put Your Chips Into Play

September 3 The Philippine Stock Market Daily Review:

Put Your Chips Into Play

The Phisix opened the trading day with oomph; gapped up as the three-year threshold resistance levels collapsed under the fiery siege of the rampaging bulls. Sanguine local and foreign investors combined to push the Phisix to close at its highest level in three years at 1,627.96 up today by 13.96 points or .86% on moderate volume of P 747.063 million.

Foreign trades accounted for a little more than a third of the today’s output meaning the local investors were the primary movers of today’s activities. In spite of the local dominated trading, foreign capital registered a massive inflow of P 121.137 million or about 16.21% of today’s output. Most of these inflows were diffused among the heavyweights; 6 of the 8 blue chips recorded significant inflows…PLDT (+.37%), Bank of the Philippine Island (+3.65%), Ayala Land (+3.63%), Ayala Corp (+3.57%), Globe Telecoms (-.55%) and San Miguel B (+1.43%) while SM Primeholdings (-1.72%) and Metrobank (unchanged) were the companies that posted slight liquidations.

Sentiment was generally bullish as advancing issues trumped declining issues by 44 to 37, number of issues traded is at record high of 132, 3 industry indices (Commercial Industrial, Property and Finance) were higher against 2 losers (Mining and the ALL index) and one unchanged (Oil) and foreigners bought the broader market more than it sold, aside from the net positive inflows to the mostly blue chips issues.

In our previous postings and newsletter, we have noted that the market’s uptrend has been a matter of a long term cyclical shift from the decline-bottom to the fledging advance phase. In addition, we have long preached that today’s market is on the verge of fulfilling its cyclical new administration honeymoons as seen since 1986 to even horrid bear market years of 1997 to 2002. Finally, the final quarter of the year has been the seasonal strength of the stockmarket. Unlike in 2003 where foreign money dictated on the Phisix’s rise, today’s monumental breakout comes in the fore of local optimism which was manifestly progressing since the second quarter.

We have also noted that since 2003 and through the most part of 2004, PLDT has been the sole pillar of Phisix’s rise and refreshingly enough today, we saw the other blue chips compliment PLDT. These diffused gains among the heavyweights would definitely provide for a sturdy framework for the latest market’s rise and a most likely continuity. So what else are you waiting for…

Put Your Chips Into Play!