Yesterday, I wrote about the bloodbath in the Philippine stocks index. Truly, the panicked in the market worldwide spurs heavy selling. The Philippines in no case could not be spared. Today is the continuation of the bloodbath, all the blue chips were in red lead by SM which has deteriorated tremendously during the last 5 trading days. What are the concerns behind SM's exodus? Firstly, the MSCI Phils reduced the exposure to SM although fundamentally strong this was perceived by investors as threat to an all time downside. Whatever the reactions for today would be viewed as pessimism in the stock market. Commodities such as oil breach the $109 per dollar and the gold inched up to $1,420 above the resistance level. Investor are going back to commodities to play safe.
The ASEAN is a big economy, although the weakness in Indonesia and Thailand was perceived to be an immediate entry to the recession point. I don't think this case is the same with Philippines, analyst and economist projected the growth for 2nd quarter slows to 7.3-7.5, a hairline low with the 1st quarter of 7.8%. Whoa! The 15% decline in the last five trading days was a big setback for investors. Panic is everywhere but this time will be best for bargain. Imagine SM reaching the high of 1,100 p/s omg... ouch... I can't buy that, that's too much, we are now entering the correction level to challenge the stocks into going back to fair valuation, they are simply ovepriced at the index above 6,500. Though, I am not praying that the index will dip into 4,000 which I viewed as recession point but still my money was set side to get the good catch.
Of course, the market is volatile, so watch for trends, I still stand not to lighten my selected issues, instead, I am diligently considering bottom price buying for issues like CEB, MEG, EDC, and MBT. I like CEB for it's aggressive market expansion, they change the mechanics of play in the airline industry. I would say that CEB was the innovator in the Philippine aviation. The entry to the UAE this Octoberr posed a big challenge to big airlines such as Emirates, Cathay, Singapore and other foreign carrier with flights Manila-Dubai v.v. The price war is now open, watch out for CEB, it's time to fly JUAN in the dessert and may enjoy the dessert Safari.
The ASEAN is a big economy, although the weakness in Indonesia and Thailand was perceived to be an immediate entry to the recession point. I don't think this case is the same with Philippines, analyst and economist projected the growth for 2nd quarter slows to 7.3-7.5, a hairline low with the 1st quarter of 7.8%. Whoa! The 15% decline in the last five trading days was a big setback for investors. Panic is everywhere but this time will be best for bargain. Imagine SM reaching the high of 1,100 p/s omg... ouch... I can't buy that, that's too much, we are now entering the correction level to challenge the stocks into going back to fair valuation, they are simply ovepriced at the index above 6,500. Though, I am not praying that the index will dip into 4,000 which I viewed as recession point but still my money was set side to get the good catch.
Of course, the market is volatile, so watch for trends, I still stand not to lighten my selected issues, instead, I am diligently considering bottom price buying for issues like CEB, MEG, EDC, and MBT. I like CEB for it's aggressive market expansion, they change the mechanics of play in the airline industry. I would say that CEB was the innovator in the Philippine aviation. The entry to the UAE this Octoberr posed a big challenge to big airlines such as Emirates, Cathay, Singapore and other foreign carrier with flights Manila-Dubai v.v. The price war is now open, watch out for CEB, it's time to fly JUAN in the dessert and may enjoy the dessert Safari.
Sir..help you me sa PSE...
ReplyDeletehehe..matagal ko na kcng gusto matutunan..
ReplyDeletesir I shared it in my 8 groups..Nice journal sir.
ReplyDeleteyeap, i will when i get there... form a group so i can deliver a symposium for JPIA to educate young people on stock investing!
ReplyDelete