Daily Market Notes September 17, 2009

PSEi                 2,771.97         UP      3.36
value  php             2,950,827,875.00

DOW    108.30 +1.12% 9,791.71
NASDAQ  30.51 +1.45% 2,133.15
S&P 500 16.13 +1.53% 1,068.76

A better-than-expected reading on the manufacturing sector added to optimism about the recovery sends Wall Street to fresh highs led by banking and industrial sector.

Locally, the mud slinging continues in the PSEi as well as in the senate.  A brief opening pop worth 38 points was abruptly eroded down to only a 3 point gain by the close.Losers were led by previous leaders TEL MER. TEL 2300 (down 30 with 241m nfs), and MER 174 (down 6 but with 32m nfb)decided to shave 15 points off the index from the top.

In our conspiracy talk with forumer Longneck and discussed in our Dragon's Den, it is our opinion only
that it is not totally impossible that the current local sell off is instigated by admin spin doctors to create just the sentiment of disapproval of erap running.

This administration has probably an unseen hand everytime political crises emerge against it like the Oakwood mutiny, magdalo walk out of court, hello garci scandal, to name a few. This administration may be perceived as serious in protecting equity markets to boost the country's image in times of crisis and attacks but only if against the administration.

In this case, the mudslinging attacks are between two opposition members, which is beneficial to the administration.  

In the absence of TEL's 240m NFS, foreign trade is virtually nil even at 1.103B pesos.

With a strong fund worth billions backed up by government financial institutions, one can easily
sway the index by propping or decimating the big caps namely TEL MER.

Going back to our market rundown, FPH continues to suffer 89m NFS, as an intraday rise to 37.5 was
not sustained and left the stock down to 36 on negative perception of FGEN's upcoming rights offer.  It's hard to go Ecclesiastes on this one, as this too shall pass sooner rather than later.

A brief look at what foreigners bought to absorb TEL's NFS:  BPI 62M, MER 32M, JFC 29M, AC 59M, ALI
47M, MEG 14M,

nfs were lorded over by: RLC 99M, VLL 27M, FLI 21M, SM 24M.

After all the buys and sells that have been done, meg and fli manage to survive the tight ranges of
1.48 to 1.56, and .97 to 1.06 respectively.

Meanwhile, top gainers include PNB 25.50 , lihc 9.8, upm 0085.
Sinkers were OMW2 0034, OV 016, VLL 2.36, OM 0085, LOTO 13.75, AMC 5.3, MED .20

Local mining stocks MA/B LC/B tried to rise but sellers quickly erased gains to close them virtually
unchanged.

Perhaps a withdrawal of Erap's much ballyhooed candidacy would spark our very own delayed rally.  No
withdrawal by tomorrow's trading session means not much rise can be expected from the PSEi who once again goes on long weekend holiday on Monday on muslim holiday Eid'l Fitr.

Such are the travails of a third world country.  Where economic data on jobs, manufacturing, etc. do not matter as much as political policy.

TOTAL FOREIGN BUYING   : P    863,325,276.00
TOTAL FOREIGN SELLING  : P  1,103,934,319.62

NO. OF ADVANCES:              53      
NO. OF DECLINES:              46      
NO. OF UNCHANGED:             61
NO. OF TRADED ISSUES:        160
NO. OF TRADES:             8,947

LEGEND:
NFB : Net Foreign Buying
NFS : Net Foreign Selling
PHP : Philippine pesos

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