Philippine Stock Market Commentary

Philippine Stock Market Commentary as of March 27, 2010

The 3,130 resistance level was broken by a star, two hammers and a drop in volume.  All of them are reversal patterns.  Thursday’s PSEi increase was even just led by the industrials with 40 advances, 50 declines, 69 unchanged issues.  Net foreign buying is up due to positioning in companies with upcoming cash dividends such as MBT.  With these reversal patterns, overbought indicators and the Holy Week break coming, we are looking forward to a healthy correction.  HOLD.

Net Foreign Buying:

PHP301 mn as of March 24, 2010

PHP160 mn as of March 25, 2010

PHP370 mn as of March 26, 2010

Pymwymi Fund Performance

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 10.6%, while the PSEi is up 5.8% from the start of 2010.  The Pymwymi Fund’s performance has outpaced the PSEi considerably in March.