Blue chips and the PSEi

US Market and PLDT ADRs

The US market was down on Friday (Feb 9, 2007) by 56.80 points. The Dow Jones Industrial Average (DJIA) closed at 12580.83.

The PLDT ADRs (American Depository Receipts) was down by $0.15 to close at $51.24.
The Dollar traded this morning (9:39 am) at Php 48.310.

Conversion: $51.24 X PhP 48.310 / $1.00 = PhP 2475.00


The day's market - February 12, 2007

Philippine Long Distance Corp or PLDT (trading symbol TEL) closed at PhP 2550/ share on Friday (feb 12, 2007) at the PSE.
With the PLDT ADRs trading at only PhP 2475 in the US markets; it was seen that at the last trade that PLDT was overpriced and soon enough fell to close the gap.

For the purpose of illustrating the movement of the Philippine Stock Exhange Index (PSEi) against blue chip issues, aside from PLDT; the price movement of Ayala Corporation (AC) and Meralco B shares (MERB) were monitored during the trading day.

-------------------------PSEi--------TEL (PLDT)-----AC-------MERB
Feb 12 (friday) --------3245.81------2550-----------635---------75.50


9:31 am---down 2.29----3243.52--------2550------------635---------75.00
9:35------down 4.53----3241.28--------2550------------630---------74.50
9:43------down 18.87---3226.94--------2525------------615---------74.00
9:47------down 21.22---3224.59--------2495------------615---------74.00
9:48------down 29.55---3216.26--------2495------------615---------73.50

With PLDT being weighed heavily in the index, the PSEi is obviously influenced by its trading price and movement in other index heavyweights.

9:50------down 36.22---3209.59--------2480------------615---------73.50
9:52------down 32.58---3213.23--------2495------------615---------73.50

Momentum now carried the market lower as selling spread across the market.
PLDT, AC and MERB has hit the days' bottom.

9:54-----down 37.85---3207.96--------2495-------------615--------73.50
9:57-----down 39.57---3206.24--------2495-------------615--------73.50
10:02----down 40.62---3205.19--------2495-------------615--------73.50

As the market neared the 3,200 support, bargain hunting once again became evident. The rally is led also by the blue chip issues

10:11----down 36.42---3209.39-------2500--------------620--------74.00
10:13----down 35.12---3210.69-------2500--------------625--------74.00
10:16----down 33.74---3212.07-------2500--------------625--------74.50
10:34----down 34.73---3211.08-------2505--------------620--------74.50
10:40----down 33.54---3212.27-------2505--------------620--------75.50
10:50----down 28.86---3216.95-------2510--------------620--------75.50
10:51----down 24.66---3221.25-------2515--------------620--------75.50
11:07----down 30.40---3215.41-------2515--------------620--------75.50
11:10----down 26.38---3219.43-------2515--------------620--------75.50
11:22----down 25.42---3220.39-------2515--------------615--------76.00
11:26----down 21.72---3224.09-------2515--------------620--------76.50
11:31----down 19.87---3225.94-------2520--------------620--------76.50
11:40----down 15.95---3229.86-------2525--------------620--------76.50
11:43----down 13.36---3232.45-------2520--------------620--------78.00
11:54----down 9.99----3235.82-------2525--------------625--------77.50
12:00----down 11.65---3234.16-------2520--------------625--------78.50

Market closed.

The market again showed its resiliency as it recovered most of its losses.

*****If today, one was lucky enough to buy on these dips and sell on recovery, (see MERB; low 73.50 and high 78.50) then you have just made money by daytrading.