Philippine Stock Market Commentary

Philippine Stock Market Commentary as of March 12, 2010

After being buoyed by TEL’s Friday cash dividend ex-date, the PSEi started to correct sharply after the hammer formation on Thursday.  Net foreign buying waned but still reflects positioning to upcoming major cash dividend ex-dates such as AEV, AP (March 19), MBT (March 22), ACPR (March 22) and ABS (for local investors; March 26).  Trading volume likewise declined generally throughout the week.  Immediate support levels are seen at 3,034 and 2,985.  No Buying Window is seen yet, and we recommend a HOLD at the moment and maintain our liquid position.

Net Foreign Buying:

PHP515 mn as of March 9, 2010

PHP495 mn as of March 10, 2010

PHP223 mn as of March 11, 2010

PHP46 mn as of March 12, 2010

Pymwymi Fund Performance

The Pymwymi Fund is up 2.8% for 2010.  We shall reinvest the total Pymwymi Fund in our next Buying Opportunity.