Thursday, May 31, 2012

Phisix: Very Impressive Day or Month End Close for May 2012

Considering last night’s carnage in the US and the Europe…

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table from Bloomberg.com

The Philippine Phisix rebounded strongly from an anemic opening to the close at the day’s highs or strength…

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Intra-day chart from technistock.com

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Table from PSE

Gains had apparently been concentrated on the blue chips or heavyweights, particularly on holding and financial sectors.

Peso Volume ballooned, probably due to either cross trades or special block sales.

Nevertheless decliners edged out advancers to signify rotation from second and third tier issues to the heavyweights. This should be a good sign.

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Finally, while most of Asia’s major bellwethers has been on the red, the Phisix stands out as the day’s best performer and outlier in terms of a few rare gainers.

Some questions begs to be answered: Could this be just window dressing? Question is why the Philippines only and not the ASEAN majors? And why aggressively buy up on the Phisix considering that the overall markets have been down and could have provided better opportunities for bargain hunting (at lower price levels)? Could Philippine government institutions, as SSS or GSIS, signify as forces behind today's magnificent surge?

The quotation has yet to be published so my comments will be limited to this.

Gains has been impressive but general uncertainty remains.

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