PSEi New Record High; Mining Sector Did it Again; WPI Hit the Roof

Posted by – August 1, 2011

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The PSE index – 1 August 2011

Asian stocks rose as President Obama sealed the deal to avert national default, raised federal debt limit and cut spending.

The Philippine Stock Exchange index, as I expected, closed on a new record high at 4,550.53 points (+46.90 points or +1.04%). Market breadth was positive with 109 gainer stocks vs. 39 losers, while 38 stocks were unchanged. The Mining & Oil sector dominated at 2.41% increase. I’m optimistic that the upswing will continue tomorrow.


Philippine Mining Companies Did it Again

Mining companies namely, Manila Mining, MA +10% and MAB 8.20%, Nickel Asia, NIKL 4.37%, Oriental Peninsula, ORE +3.52%, as always, they performed very well on today’s trading.

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WPI and WIN Raised the Roof









Waterfront Philippines Inc, WPI, and sister company Wellex Industries Inc, WIN, hit the ceiling at 50% and 49.43% respectively, on rumors (not again?!) that Puregold, a grocery chain, will do a backdoor listing via WPI this November. Regardless of the rumors, If you bought these today, prepare to sell them tomorrow at the opening. Like I always say on my previous posts, newbie traders, stay out trading these penny/basura/3rd liner stocks, rather, invest your funds on index stocks, eg. mining or property stocks.

Good luck and enjoy trading! ;)

Philippine Stocks Decoupled? Invest in Au or Ag; Local Shares Up

Posted by – August 1, 2011

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The PSE Index – July 29, 2011

The Philippine stocks went up on Friday, July 29, to end the month on a high note. The PSE index added 20.83 points as it closed at 4,503.63, which is poised to break a new high this week.

For the past years, the US and the Philippine stocks are somewhat correlated, which means, Philippine stocks will move on the same direction in relation to the US Dow Jones Industrial Average or the S&P500. Probably because we’re dependent on the US economy and most of our exports go to the US? I’m not sure though since I’m not an economist, but for the past few months, it seems that we’re now decoupling from the US markets. Decoupling, for your info, denotes the separation or independence of markets from each other.

We can see this clearly on this chart from Bloomberg as I’ve compared the Dow Jones Industrial Average (INDU:IND) against the Philippine Stock Exchange Index (PCOMP:IND). The PSEi is on an uptrend while the Dow is plummeting.


With fears of the US going on a default, US stocks might continue to drop and the United States could face another recession, I hope I’m wrong…


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The safe haven for investors fleeing from the US markets, I’d say is to invest in Gold (Au) or Silver (Ag). With gold prices hitting an all time high, at $US1637.50 an ounce, it would be a smart move if you could buy gold (XAUUSD) these days. Alternatively, you can invest on mining companies or invest in the Asian markets, particularly in the Philippine stock market. ;)


Local Stocks Gaining Strength

On the local scene, Banco de Oro (BDO) +0.39%, Alliance Global (AGI) +1.58%, PLDT (TEL) +0.76% and Ayala Land (ALI) +1.45% were among the most actively traded Index stocks. Foreigners were net buyers, buying P341 M worth of shares.

Nickel Asia Corporation (NIKL) announced its 1st Half 2011 financial and operating results, with attributable net income increasing by 149% to P1.73 billion from the P694.6M net income reported  in the six months ending June 30, 2010. More details on this disclosure dated July 29,2011.

Leisure & Resorts World Corporation (LR), declares cash dividends at P0.03/share with an Ex-date of Sept. 23, 2011, Record date of Sept. 28, 2011 and payable on Oct. 21, 2011. Read the disclosure here.

I’d expect NIKL and LR to gain popularity on Monday because of these good fundamental news. Not to mention, the possible candidates for top gainers tomorrow, Zeus Holdings, ZHI and Basic Energy Corp, BSC as they surged on closing, Friday. PWR, on the other hand, is still a magnet of unsuspecting traders as it fell on the closing bell at P2.80 or -3.45% after  opening strongly at P3.20. Some people are really stubborn… :D

Good luck to us all! Monday will be an exciting day!

A NIKL Ain’t worth a Dime Anymore

Posted by – March 27, 2011

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PSEi added 34.27 points, NIKL disclosure

Philippine stocks closed higher on Friday, March 25, as traders bought index stocks in the oversold region. The PSE index closed at 3,875.81, up by 34.27 points. The actively traded index stocks were SM, EDC, MPI, MER, MBT and AC, where Manila Electric Company (MER) lead the gainers at +8.18%.


NIKL Cash Dividend

In line with Nickel Asia Corporation’s (NIKL) impressive earning’s, the board of directors has approved the declaration cash dividend at P0.35/share. From Nickel Asia’s Press Release, Nickel Asia’s earnings before interest, tax, depreciation and amortization (EBITDA) in 2010 increased by 138% to P4.26 billion compared to P1.79 billion in 2009. “The higher earnings performance for 2010 was the result of improved nickel prices combined with significantly higher sales of nickel ore, which enabled revenues to grow by 78% to P8.34 billion from the previous year’s P4.69 billion.”

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Please note that the Ex-date or Ex-dividend date is on April 6, 2011, record date is on April 11, 2011.  FYI, you need to buy the stock (NIKL) before the ex-date and hold it until the record date. Dividends are paid to shareholders who hold the stock on the record date. The cash dividend will be paid on May 9, 2011.

If you’re planning to buy NIKL, I’d suggest that you buy below 20.00, eg. 19.00, target price at P21.00 to P23.00, be sure to hold it until April 11 to profit from the cash dividend. I’m using the Bollinger Band on this stock to get the support and resistance of the prices. more info on stockcharts.com

NIKL - Nickel Asia Corporation

NIKL – as of 25 March 2011


Ok that’s all for now guys. You might also want to check my friend’s blog at aTimidTrader.com since I’ll be doing some guest blogging from time to time.

On a side note, a Nikl ain’t worth a dime anymore, it’s now worth P20 per share. ;)


Warning: Before buying any stock, please see Risk and Disclosure.