Philippine Stock Market Commentary as of February 5, 2010
Investors accumulated on stocks after the Phisix dropped on early trade reacting to the DJIA’s 268 point dive on discouraging unemployment figures and fears of economic contagion fueled by Greece. A black hammer formed at the end of the trading day with volume nearly as big as and since January 20, 2010. This indicates a reversal pattern to be confirmed on Monday, the next trading day. If the Phisix outperforms today’s results on Monday, then the run-up may ensue. If not, support is seen at the 2,700 to 2,800 level, August to September 2009 levels.
It is already one month since the start of trading in 2010, and after calling a HOLD at the start of our stock market commentaries, we called a January 28, 2010 BUY. The markets, however, were still reeling from negative sentiment, and no long run-up has occured as of yet. Still, indicators are at oversold levels, and the 2010 correction so far, has been significant enough to watch out for an upcoming rally.
Pymwymi Fund Performance
The Pymwymi Fund has fallen 1.9%, and the Phisix has fallen 3.6% since our BUY call last Thursday, January 28, 2010.