Daily Market Notes August 28

PSEi 5,175.62 +32.27 (0.63%)


While the Philippine market was absent yet again for another Monday Holiday, Big Brother Wall Street's Dow Jones sank down 100 one day (Thursday), recovered 100 the next day (Friday), and was back down 30 points yesterday (Monday). Asia was not too keen and did not go up in unison, as we best paint the picture "mixed".

At the get go, the opening bell saw index stocks being sold down again in a flurry. The Index sank 28 points before it gradually recovered like the V made by Voltes V's sword when he slices through opponents. The recovery did not stop there, and continued much higher in the afternoon session, to close the market up by 32.

Impressive recovery, no significant value turnover to back this up (only 4B), and still 100m NFS.

We asked around why the sudden reversal, and two things come to our ear. One, GDP expectations, and two, Q3 Window dressing. I would guess it's the latter.

What started the rally?

AGI AC ALI were the prominent ones. AC from 420, went to 426 but settled to 424. AGI's low was 11.22, and closed at its high at 11.72! This gaming rise rubbed off slightly on LR BEL BLOOM, but just ever so slightly. Even AGI's fellow Andrew Tan stock MEG was unchanged at 2.26. The other Andrew Tan company ELI was quite strong at .80, possibly on good earnings report last week.

Before I forget to mention it, last Friday saw the announcement of SM's top up offering to selected investors at 700. On the same day of the announcement, the sale to investors were already made and crossed on the board on that same day. There should be a rule that such secret placements should be disclosed many days in advance. Those in the know had the luxury of selling much earlier, above 745 at the open market, and then simply buying back the stock at 700. Tsk tsk tsk. Incidentally, SM recovered slightly to 707.

There were some continued maneuvering of TDY by different parties, including the one big gambler who is happily hitting up many flucts due to the thin postings. This was helped by known Lucio Tan broker PAN Asia's big buying last week. However, Pan Asia was already selling this hoard and it seems to be for simple trading. TDY went to 13 before settling to a hanging man close of 12.7. I see a lower low now created, and below 11 is not impossible, since they announced last week of more placement shares to other investors.

For that other Lucio Tan company ETON, there was no real news to justify its intraday spike to 5.29, except that the Bourse lifted its trading suspension. Previous close was 3.53, and gravity pulled it quickly back to 4.55. Eton was suspended previously due to failure to comply with structured reportorial requirements.

On the Lopez front, most of them failed to even hold on to half of the day's gains: FGEN FPH EDC MER all went back to virtual flatdom.

FOREIGN BUYING Php 2,675,067,038.11
FOREIGN SELLING Php 2,769,194,142.36

Still 100M overall NFS, despite a big 228M single NFB on AGI. That means there more different other stocks that had NFS aplenty, and AGI just offset some of them.


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

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