MARKET SUMMARY
PSEi
All Shares
Industrial
Financials
Property
Mining & Oil
Services
Holding Firms

Bourse closed green, PSEi at 3,119
Last-minute buying & improving global sentiment pushed barometers higher Wednesday. The PSEi closed with a 12-point gain at 3,119.63 (+0.40% day-on-day), as industrials (+1.6%) & holding (+1%) led sector gainers. TEL (+P5 at P2,680) emerged as most actively-traded, after taking 16% of turnover, followed by: URC (+P0.50 at P22.75); EDC (+P0.15 at P4.95); & FGEN (+P0.60 at P10.50). Meanwhile, ICT (-P0.25 at P21.75); & SM (-P2.50 at P367.50) defied the trend. Participation zoomed to P3.34bn, as gainers-losers reached 59-52. Net foreign buying prevailed at P494mn.

Trading Outlook for March 11, 2010
Positive momentum might spillover Thursday, especially after European Commission President Romano Prodi gave an assuring statement Greece’s financial woes are 'over'. This might be aided by positive economic data at home, starting from improved exports for January (+42.5% year-on-year) as well as foreign direct investments for 2009 (+28%). Largecaps especially utilities, might lead the ascent, as well as select inflation-hedge plays (metals, property). Position on weakness & trade a range. Immediate support is 3,100, resistance at 3,150.

Weekly Outlook for 08 - 12 March 2010


Separate the wheat from the shaft
Tame inflation.  February's local headline inflation came in at the low-end of what most market watchers expected (4.2% versus 4.3%), largely driven by reduced food, beverage & tobacco prices (+3.8% against +4.3%), as well as housing & repairs (+1.8% against +2%). While skeptics might still heed for sequel month's inflation numbers, part of the psychological boost stems from the fact the numbers are still single-digit, which should aid in improvement of consumer demand growth. Moreover, business costs are likely to remain 'tame', supporting listed companies' capex rollout initiatives this year. While most might still exercise caution following the lagged effect on pricing from El Nino weather pattern, coupled by intermittent interruptions in electricity generation & distribution lately, the fact remains expansion would still be supported, as economies emerge from a relatively low base last year. Lastly, the local central bank has kept a tight watch on liquidity growth, even with an approaching election spending-driven season this May.

Track turnover gauge.  This week, local & foreign investors will heed for fresher catalysts, specifically those that would help drum-up momentum in equities. Based on last week's last 2 days of trading, activity slowed to about P2.5bn on average, against prior session's P3.3bn. Any recovery above the P3bn mark would be lauded, as prevalence of weak turnover might indicate investors' possible switch to a 'wait-and-see' stance on the market. Balance portfolios by holding on defensive bets, and stocks that are likely to benefit from positive spins over the near-term. It would be timely to check on which stocks would be worth holding for the long-range (e.g., more than a year), and issues that can be traded for the short-term. Immediate support is 3,000, resistance at 3,070-3,090.


STOCK SNIPPETS
RIZAL COMMERCIAL BANKING CORP. (RCB) - Flat 1Q09 earnings.
EEI CORPORATION (EEI) - 1Q09 earning +24.5%.







FOREX US$1 : Php 45.72
  TODAY PREVIOUS
 Close 45.72 45.65
 Open 45.60 45.77
 High 45.76 45.78
 Low 45.56 45.61
 Volume 609.96M 1000.46M

WORLDWIDE TRADING

Start a 20-day free demo account with simulated EUR 100,000 fund with 2TradeAsia's partner, Saxo Bank. Try out new market strategies on foreign exchange to get yourself familiarized with Saxo Bank's platform. FREE TRIAL


TREASURY BILLS
as of March 08, 2010
TENOR(Day) CHANGE (bps) RATES VOLUME
91-day (-5.8bps) 3.863 2.00
182-day (-3.0bps) 4.092 3.00
364-day (-6.20bps) 4.428 3.50
       
TOTAL     8.50















EMPOWERING BUSINESS