The PSE Index – 11 January 2012

While everyone is busy promoting the Philippine tourism with the help of Department of Tourism’s slogan “It’s More Fun in the Philippines.” I’m still busy promoting the Philippine stock market. Here’s one good reason why it’s good to trade in the Philippine stock market…

Today’s close at 4,645.86 points marks a new record high for the PSE Index. Market breadth was positive with 127 gainers versus to 49 losers; while 37 stocks unchanged. All-shares Index closed also at its peak of 3,151.2, which was led by the property sector sub-index. Big cap stocks were the most actively traded led by the heavyweights PLDT (TEL, +4.45%), SM Investments Corp (SM,+4.39%) and Ayala Land Inc (ALI,4.15%).

I was thinking that the index will hit the 4,500 mark on the first quarter of this year but it already surpassed that level earlier than expected. The next target is at 4,700 points while other analysts expect the index to close at 5,000 before the end of 2012. I would expect a market correction for the next few days, probably between 4,540 to 4,450.

Just for your info, based from this report, Philippines is in 2nd place (tied with Malaysia) in the MSCI Emerging Market Equities 2011 best equity performers. Indonesia bested the rest of the EM countries with 6.4% US Dollar total return in 2011. I’m betting that the Philippines will perform better this year

So what’s the significance if the index is at all time high? For me, nothing much really, unless your portfolio is comprised mostly of index stocks. It may also attract foreign fund managers to give a second look on the Philippine market. Like what Mark Mobius, chairman of Templeton Asset Management’s emerging market group, said last year that “Philippine stocks are getting “expensive” but there are still buying opportunities in selected sectors like services and commodities.

Well, it’s only a matter of time before we realize what Mr. Mobius is really telling us. I’m not really a long term investor, unless my big trades fail and don’t want to cut a huge loss, but as of now, I still trade speculative stocks because of their volatility but risky . I just got in at CYBR (Cyber Bay Corp) since it broke out from 0.85, I can see a near term resistance at 0.95, 1.02 and 1.08. If my speculation is correct, it might surpass 1.45, if a breaking news comes out

Good luck and enjoy trading!

Images courtesy of:

http://itsmorefuninthephilippines.com/

www.123rf.com