PSEi new high; PNB-Allied Merger in Jeopardy? | PNB Allied Bank Merger

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The PSE Index – 5 March 2012

Sure enough, the PSE Index closed above 5,000 last week. It even made a historical high today closing at 5,030.58. (+14.28 points or +0.24%). Friday’s close was the anticipated break from the 5,000 psychological resistance, gaining 77.69 points at 5,016.30.

Gainers outpaced losers 92 to 71, while 40 issues were unchanged.

PSEi Index-March-5-2012

Stocks which are Breaking New Highs

Notable gainers today are Marcventures (MARC), which brokeout from its symmetrical triangle pattern, with a significant volume at 3.12 (+22.35%). Phil. Estate Corp (PHES) closing at its highest price since 2007, at 0.61 (+10.91%). Wellex Industries Inc (WIN) trailing behind at 0.40 (+10.91%). Oriental Peninsula Resources Group (ORE), testing its previous high, closed at 6.12 (+7.75%). Philodrill Corp (OV) also closed on its new high at 0.055 (+5.77%). Among the index stocks, Ayala Land Inc (ALI) closed with an impressive +5.24% gain at P22.10, its new all time high.

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PNB-Allied Bank Merger in Jeopardy?


I just got an email alert from Google on Philippine National Bank, PNB (You should also setup email alerts in Google for your stocks Winking smile) which read “SEC, BSP asked to stop merger of PNB-Allied Bank.”

Just when many of us been expecting this merger and a target price of P70/share, then suddenly comes this Government issue!? The “Government” already halted the rally of mining stocks because of its Executive Order, see “EO on Mining to Take Time” then this? What’s next? What the hell ?!?! Steaming mad

Anyway, let’s analyse PNB’s chart. I’m seeing a bearish divergence between the price and Force Index. So there’s already a signal last Friday to sell. If the market reacts on this news tomorrow, we might see PNB’s share price to go down to 64, which I hope not. Will this be an opportunity to buy, take profit for the meantime or cut your losses early? That’s for you to decide.


Here’s my quote of the day from Brian Tracy Smile from his book “Eat that Frog”

An old saying is that “If the first thing you do each morning is to eat a live frog, you can go through the day with the satisfaction of knowing that that is probably the worst thing that is going to happen to you all day long!” Your “FROG” is the one you are most likely to procrastinate on if you don’t do something about it now!

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