The Weakened Bull Pushes On

FACTS

The Bull Market is on its 9th day today. And with fresh funds of more than P20 million plus the liquid cash of around P7 billion from yesterday's profit-taking, the PSEi moved up much stronger than yesterday but half the force it showed at its peak on Monday. Value turnover reached P8.4 billion as PSEi rose to a new high of 6,095.07 (from 6,055.42), an increase of 39.65 (compared to the Monday increase of 73.46).

 

Gainers continued to outrun Losers at 109 and 73 respectively; stronger than their performance yesterday and on Monday, but with more resistant sellers and lower participation levels at 214 (vs. Monday's 216). 

 

Metrobank still topped the favorites with a value turnover of P593.4 million. Top Gainer, Century Peak Metals Holdings Corporation (CPM), managed to gain 27.55 percent. Worst loser of the day is Apex Mining Corporation, Class B (APXB) shares, which is down 6.67 percent.

 

Few issues reached new highs as the rest struggled to buy into positions at much lower levels compared to what had been attained on Monday. The gains reflect a surge occasioned by a contest to reposition in other stocks at still lower prices for a potential windfall tomorrow. But there had been no strong perceptible upward pressure that can push prices to higher levels than what the Monday performance achieved.

 

ANALYSIS

Despite the surge--all indices rising and no overwhelming selling within the day--the selling pressure continued to be strong because of limited new funds available to support a stronger rise in the market.

 

With buying dominant in the market today, a reversal may happen tomorrow as traders try to cash in their profitable positions today unless fresh funds as high as P8 billion enters tomorrow. Otherwise tomorrow will another day of profit-taking and repositioning in neglected stocks as the rest of the market experienced lower price levels.

 

RECOMMENDATION

There are still available opportunities for speculators and traders to make money from price difference tomorrow. Value-oriented investors however may find more opportunities to get into though.