Professional Documents
Culture Documents
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DAILY REVIEW & OUTLOOK_ TD022-23_February 1-2, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
3,830.49 -50.98 -1.31% 1,871.72 4,023.66 34 93 39
an equity portfolio – even more after Tuesday's slide which aggregates INDONESIA JKSE 3,428.06 0.55%
the market's three-day losses to -160 points or 4.0%. The year-to-date INDIA BSESN 18,303.75 -0.13%
is even more magnified -- -8.8%! Last year, the market slipped -8.4% SINGAPORE Straits Tim e s 3,189.72 0.31%
through mid-February before surging the rest of the year towards a M ALAYSIA KLSE 1,519.94 -0.13%
37% gain. VIETNAM HO CHI M INH 510.60 1.58%
BANGLADESH DSE Ge ne ral Inde x 7,484.23 1.33%
As at the end of January alone, nearly half of PSEI component M ONGOLIA M SE Top 20 24,564.20 1.30%
counters were trading at earnings multiples less than the index' LAOS Laos Com pos ite 1,749.66 4.45%
15.42x. Extending the screen to cover all index and subindex As of 1238H End of Day
components, the number runs to more than 30 stocks. These are
prime candidates for bargain hunters.
Admittedly, the pervasiveness of the pessimism that has visited the market at the close of the preceding week renders confidence on a shaky
footing – at least over the near term. The long-term outlook remains rosy, however, with global economies showing marked and sustained
improvements in their economic numbers. The medium term may be challenged by an expected slower year-on-year growth in Q1, owing to
the strong performance last year. Much of the recent resurgence of risk was presented more by geo-political, rather than, economic
concerns. A quick resolution of the troubles in Egypt will restore normalcy in global financial markets.
Moving forward, we may see negative sentiments continuing to spill over to the trades, but we expect its influence to diminish, in the same
manner the Korean conflict impacted on markets late last year. Over the least three years, unanticipated developments such as that
currently rocking the middle east have presented a good opportunity for “crisis investing” and a contrarian policy. It may not be different
today.
Having said that, the drop to the 3,830 level brings to the surface the 3,790 support mark. It may be prudent for investors to observe if the
market will be able to hold support levels before going heavy on equities. Again, this is consistent with our 2011 outlook of guarded
optimism.
DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE AVAILABLE TO
OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN IS
FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE
SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS
REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE
INDUSTRIES MENTIONED.
DAILY Report Page 1 of 1