Trading Outlook for June 21, 2010
Players might seize on any intra-day rallies to take their profits, with very little significant leads overseas & in the local arena. This might also be supported by potential 'technical breathers' given local equities' improvement the previous sessions. Declines might be limited however, as some investors heed for the general outcome of the US FOMC's meeting on interest rate policies. Consider getting good dividend plays in your portfolio. Immediate support is 3,300, resistance at 3,350.

Weekly Outlook for 21 - 25 June 2010
Optimists prevailed during the week, on renewed confidence for global recovery prospects. Part of the boost came from improved manufacturing gauge in the US, while issues tied to European states' debt crisis simmered down. After moving within 3,290-3,336, the PSEi closed 70 points higher week-on-week at 3,335.48 (+2.14%). Gains were primed by holdings (+3.96%); & property (+2.62%). Lead gainers were: MEG (+14.5% at P1.42/share); JGS (+11.86% at P16.50); & ICT (+10.91% at P30.50). Meanwhile, GLO (-1.73% at P850.00); PCOR (-1.47% at P6.70); & MER (-1.06% at P187.00) corrected. Average participation improved 13.7% to P3.51bn, on positive market breadth, 63-38. Prior week’s net foreign selling of P374mn was reversed to net foreign buying of P64mn.

Scout for 'gems' - part 2
Influence from overseas.  US Federal Open Market Committee (FOMC) officials will convene 22-23 June (US time) to prepare their next call on interest rates as well as reassessment of the US economy. While gyrations are to be expected relative to weekly updates in economic data (e.g., consumer confidence, retail spending, GDP), expectations remain high officials would affirm their move to support monetary measures that should improve consumer & corporate spending. Riding on this theme, perceptions may continue to stay on the plus side, as external influences create its weight on sentiment.

Position in prime sectors.  Opportunities to reap capital gains abound in equities, most especially for the entire Asian region. Growth is well anchored on China's story, as well as opportunities for trade alliances this year. As mentioned, it seems timely to revisit promising counters such as property & financials, as these segments ride on the Real Estate Investment Trust (REIT) bill & construction prospects. Support from OFW remittances would aid listed financial firms, even as the global community veers away from 'proprietary trading'. Meanwhile, utilities should benefit from bagging privatization targets for the remainder this year. Immediate support 3,280-3,300, resistance at 3,370-3,400.