The PSE Index – February 24, 2012

The PSE index didn’t move much on Friday as it shed a mere 0.48 points to close at 4,893.00. Belle Corp (-7.60%), Jollibee Foods Corp (-4.58%) and EDC (-3.81%) led the index losers. On the brighter side, Aboitiz Power (AP +10.84%), AEV +5.38% led the index gainers. Market breadth was negative, with 111 gainers outnumbering 59 losers; while 39 issues unchanged.

On the other hand, U.S. crude futures rose ($109.62/barrel) a seventh day on Friday, closing at a nine-month high as Iran had stepped up Uranium enrichment work was seen inflaming Tehran’s tensions with the West, a UN nuclear watchdog said.

Based from this Weekly Chart, the PSEi, might be hovering around 4,890 to hopefully 5,000. It’s the end of the week for February, and hopefully it can reach the most anticipated 5,000 level.

Oil Stocks: OV/OPM

Due to the tension in Iran, the Oil stocks might still be in play and I don’t think this play will die down anytime soon.

Philodrill Corp, OV, is still strongly supported at PhP 0.045 which recovered back to PhP 0.049, still a resistance at 0.058, based from this daily chart.

First Metro Securities bought an additional 898M shares and sold only 59.6M shares which means they are still bullish on this stock. DBP Daiwa, also bought 160.7M shares without selling any.

Oriental Petroleum Mineral, OPM, on the other hand, lost its footing to close at 0.025. I’m expecting this stock to hover around 0.023-0.031. As this is a lagging stock compared to OV, and PXP, I’m assuming that this will recover within the next few days.

Battered Stocks: WIN and EDC

If you still own WIN or PHES, then I admire your courage. Wellex Industries, Inc., WIN, has entered into a downtrend when the kijun-sen crossed over the tenkan-sen, which we call a bearish crossover last Thursday. Though the price hasn’t reached below the kumo, it still has a probability to reverse. But if it touches PhP 0.25, below the cloud, then you’re in for a long way to recovery.

Energy Development Corp, EDC, the world’s largest integrated geothermal company, and the index stock that has been battered for the past couple of weeks is now near its August 2010 lows. It closed at PhP 5.05/share, –3.81%.  It already lost almost 30% of its value since its peak last July 2011 at PhP 7.02. Since for me, this is a value company, this is a screaming buy at P 4.34-4.50.

meme image from: themavesite

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