January 2007 Inflation Figure

Inflation

Inflation was lower in January, at just 3.9%. It was the lowest in more than three years, from 4.3% in December.

" The 3.9% inflation rate further confirms the benign inflation outlook. It provides additional flexibility for monetary policy. This will further support greater economic resilience and help advance financial reforms and strengthen market confidence"
-Bangko Sentral ng pilipinas Governor Amando Tetangco Jr. -

reference / source: BusinessMirror February 7, 2007


Peso vs the Dollar

The peso rose to a six year high agains the dollar as indications of a benign inflation environment for the year further buoyed market sentiment on the country's economic fundamentals.
It closed at PhP 48.505, a steep 16 1/2 centavo climb from Monday.

reference / source: BusinessWorld February 7, 2007



The days' market February 7, 2007

Today at the Philippine Stock Exchange
PSEi Previous close: 3271.97 (February 6, 2007)

time -----------up / down ----------PSEi ----------Peso vs $ ---------Peso vs $ volume

9:31 am -------up 12.49---------- 3284.46
9:37---------------------------------------------------48.43 -----------103.50 mn
9:38---------- up 2.89----------- 3274.86

The Philippine stock market reacted positively on a knee-jerk reaction on the strength of the peso and better than expected inflation figures.

9:43----------- down 1.62--------- 3270.35
9:54 -----------down 10.78 ---------3261.19
9:58 -----------down 6.67---------- 3265.30
10:10---------- down 12.99 ---------3258.98
10:13 -----------down 14.71 ---------3257.26
10:15 -----------down 15.25--------- 3256.72---------- 48.406----------- 254.00 mn
10:18 -----------down 18.54--------- 3253.43
10:23----------- down 26.30--------- 3245.67
10:26----------- down 28.63--------- 3243.34
10:30----------- down 29.15--------- 3242.82
10:33----------- down 30.93---------- 3241.04
10:35----------- down 32.70---------- 3239.27 ---------48.404----------- 287.00mn
10:42----------- down 32.16----------- 3239.81
10:45-----------down 35.68 ---------- 3236.29
10:54----------- down 40.52----------- 3231.45

the market seems to have bottomed out for the day and tries to bounce back

10:55----------- down 36.81----------- 3235.16
10:57----------- down 34.04----------- 3237.93
10:59----------- down 33.30----------- 3238.77
11:01 -----------down 32.83----------- 3239.14
11:08----------- down 31.42------------ 3240.55
11:15------------ down 30.97----------- 3241.00 -----------48.399---------- 353.00mn
11:20------------ down 29.52----------- 3242.45
11:35------------------------------------------------------- 48.398 -----------361.00mn
11:42------------ down 26.91------------ 3245.06
11:46------------ down 26.61------------ 3245.36

the market tried to rally above the 3250 level, its previous support but selling in the final minutes had it closing near its day's low

11:54 ------------down 29.76------------ 3242.21
11:58 ------------down 30.95------------ 3241.33
11:59 -------------------------------------------------------48.373----------- 471.00mn
12:00 ------------down 39.58------------ 3232.39
Market close



reference: Maktrade system


The market failed to stay above the 3250 support. Correction may continue on momentum and the new support is pegged at 3200-3220.


Considering the good economic figures that came out, the decline is still a healthy one and may be taken as opportunities for bargain hunting.

Trade in the next two days may be lackluster with a downward bias ahead of the weekend and the coming chinese new years celebration. A rebound may not be discounted as buying is seen to come in near support levels.