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