The Second Quarter 2010 Philippine Stock Market Report

The Presence of Value in the Philippine Stock Market

The PSEi traded within the range of a little above 3,000 to just below 3,400 in the second quarter of 2010.  There was no reason to rally beyond that range due to some factors.  The last leg of the presidential campaign and the May elections occurred in that quarter as well as some financial turbulence in the European economy and concerns about the heating property market in China.  There was value in the Philippine stock market as around a dozen stocks were trading below the blended multiplier limit in the quarter.  More importantly, six of which were also trading below their estimated liquidation value.  The dozen bargain stocks can also be formed into a diversified investment portfolio and can average with seven immediate premium stocks to safely stay within the blended multiplier limit.

Pymwymi Fund Performance

The Pymwymi fund is a basket of 15 stocks Corpecon Research has assessed as having high growth, the most resiliency to negative economic factors and high free float.  They have been screened and selected using our investment methodology as detailed in the Philippine Stocks Guide 2010.  The Pymwymi Fund is up 25.9% while the PSEi is up 12.2% at the end of June 20, 2010.  The purpose of the Pymwymi Fund is to show that an alternative basket of stocks to invest in with better returns can be created.  Like the PSEi, the Pymwymi Fund is not prone to market factors which can cause the Fund’s gains to fluctuate periodically.

Announcements

We are renaming our weekly advisories to Philippine Stock Market Research to best suit the content of our reports.  We would also like to proudly announce that our first MyRA subscriber is Angping & Associates Securities, Inc., one of the major local trading participants of the PSE.

Disclaimer

The Second Quarter 2010 Philippine Stock Market Report is solely for information.  It should not be constituted as an offer for solicitation for the purchase or sale of securities mentioned.  The information herein has been obtained from sources believed to be reliable.  Whilst every effort has been made to ensure accuracy, we do not guarantee the accuracy or completeness of the report.  All opinions and estimates expressed herein constitute our judgment as of this date made on a reasonable basis and are subject to change without notice.  No liability can be expected for any loss arising from the use of this report or its contents.  As this is general information, it does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may obtain this report.