Philippine Stock Market Commentary

Philippine Stock Market Commentary as of March 17, 2010

After Friday’s sharp correction, the PSEi has traded narrowly in the 3,000 to 3,100 level with renewed volume.  Tuesday and Wednesday’s candlestick formation would have been far different if there have been no late buying in the final minutes of trading.  Net foreign selling and weak net foreign buying also ensued after last week’s heavy net foreign buying.  We maintain our HOLD recommendation from any renewed buying.

Net Foreign Selling:

PHP271 mn as of March 15, 2010

PHP263 mn as of March 16, 2010

Net Foreign Buying:

PHP10 mn as of March 17, 2010

Pymwymi Fund Performance

The first 50 trading days of 2010 has ended on Monday, March 15, 2010.  We shall present the Pymwymi Fund performance in two ways starting today.  To recall from our first commentary, the Pymwymi Fund is composed of 15 stocks Corpecon Research has determined as having high growth, resiliency and free float according to its investment methodologies.  They are Long Term Buy and Hold stocks but traded according to conservative technical analysis used in our calls.

Aside from presenting the Pymwymi Fund as traded during the year, we shall also present it as Long Term Buy and Hold against the PSEi.  To show this, we shall assume that we invested PHP1 mn at the start of the year (January 4, 2010) when the PSEi was at 3,005 and just held on to the stocks.  The daily growth of the Pymwymi Fund and the PSEi from January 4, 2010 is graphed below.  The line graphs represents the Pymwymi Fund and the PSEi in the first 50 trading days of 2010.  The PSEi outperformed the Pymwymi Fund in most of January, while the Pymwymi Fund outpaced the PSEi from January 22, 2010 onwards.

A.  Traded During the Year

The Pymwymi Fund is up 2.8% in 2010.  Total funds available for reinvesting is PHP1,029,575.  This includes excess cash not bought into the respective board lots of our stock picks.  We shall reinvest the total amount in our next Buying Opportunity.

B.  Long Term Buy and Hold

The Pymwymi Fund is up 6.1% as of Monday, March 15, 2010 from the start of the year, while the PSEi is up 2.4% as of the same day from the start of the year.  In the same time span, the Pymwymi Fund has increased in value 37 out of 50 trading days for a rate of 74%, while the PSEi has increased 30 out of 50 trading days for a rate of 60%.  Lastly, the Pymwymi Fund has also outperformed the PSEi 37 out of 50 trading days from the start of 2010 for a rate of 74%.