THE OFW INVESTOR: PSEi Finally Bounced Back!

Stock	Buy Below	Date Bought	Current Price	Target Price	Average Cost	Return
BDO	60.00	Sep 6, 2012	62.95	81.00	60.10	4.74%
ALI	20.00		24.50	22.50	-	-
PGOLD	24.00		30.40	30.00	-	-
EDC	6.00	Sep 6, 2012	6.05	8.50	5.94	1.85%
TEL	2,600.00		2,802.00	3,000.00	-	-
AGI	11.00		13.66	15.00	-	-
MBT	94.00	Sep 14, 012	91.00	105.00	93.34	(2.51%)
PX	11.00		14.96	24.00	-	-

The numbers in the US economic data is lackluster. The U.S. manufacturing sector has contracted, consumers are watching their wallets and lawmakers in the nation’s capitol are fiddling their thumbs. Not a recipe for a stronger economy¹⁰.

The world slowdown is affecting China’s export growth. The domestic demand is softening while the foreign investment is weakening. Increasing those woes are the words of war between China and Japan that threatens to spill over into the financial markets¹¹.

After a week of profit taking, PSEi finally bounce back to start the week on positive note. Phisix returns above 5,300 and closed at 5,325.60.

Value of shares traded is P4B. Foreigners are net buyers worth P274.5M today.

INDEX TOP GAINERS

TICKER	LAST PRICE	%
BDO		3.37%
SMPH		3.18%
AEV		2.08%
ALI		2.08%
JFC		2.00%

INDEX TOP LOSERS

TICKER	LAST PRICE	%
SM		0.48%
SMDC		0.33%
EDC		0.33%
TEL		0.28%
BPI		0.19%
MWC		0.19%

BDO- the foreigners net bought P49M. Total traded value is P89M which means that more than 50% of the shares traded were gobbled up by foreigners.

After inching closer to buy below 60, it suddenly went up. Today it is the top gainer in the PSEi.

ALI- the foreigners net bought P45M. The foreigners pet is still up. Oh well…

About 500 businessmen and employees from various industries lit candles at the steps of the Provincial Capitol of Bacolod City on Monday night to express their grief in the pullout of Ayala Land, Inc. (ALI) from its land deal with Capitol⁴.

ALI refocuses the resources allocated to Bacolod City to the Talisay City project¹².

PGOLD- the foreigners net bought P6M. Onwards to 31?

PGOLD disclosed last Friday that the excom approved the commencement of the process for the possible issuance of corporate notes to tap the domestic market. Proceeds will be used to finance new store roll-outs, organically and via acquisitions.⁸.

SM on other hand is upping the ante as they plan to buy more retail grocery stores to hasten their expansion. It will join the bandwagon started by Puregold’s fast acquisitions⁹.

EDC- the foreigners net sold P73K. Finally, after battling to a draw yesterday, the foreign bears won this time dragging EDC just .02 ticks off the price.

EDC is almost flat losing .02 ticks. There is indecision among the investors.

EDC has affirmed its commitment to develop geothermal resources in Chile, following the discussions between President Aquino and Chilean President Sebastian Piñera, who both expressed keen interest in establishing a deeper partnership in geothermal energy development.⁵

TEL - the foreigners net sold P39M. And the selldown continues…

PLDT issues 7-year and 10-year notes with a fixed yield of 5.60% and 5.64% respectively. These notes totaling P8.8B will be used to refinance existing debts¹.

PLDT already completed its massive two year P67B network modernization program that will allow the company to enhance the service quality and reliability and more than triple the voice and data capacity².

Pag-IBIG taps PLDT for call center service³.

AGI – the foreigners net bought P144M. The buying spree continues...

This stock is overbought already with RSI at 78.84. Anything above 70 is overbought although there are cases when some stock still performs very well above this level. The steep ascent is not sustainable and thus sooner or later, this stock will go down to earth.

AGI is on track to hit its 2012 net-profit-growth target of 20% thanks to steady increases in real-estate sales and rental income, the conglomerate's president said Tuesday.⁶

2nd Resorts World to open in Entertainment City in 2016⁷

MBT - the foreigners still net bought this stock with P12M.

MBT touching its 130 day SMA is the red line. Either it will bounce back or it will go down further. Today, it’s a draw…Will the foreigners continue to liquidate their positions? Stop buying for now until a clear picture emerges.

PX – the battered stock. I’m adding it in my stock wathclist. Should it go below 11, I will buy. This year, its income will be reduced to P1.5-1.7B only due to the closure of Padcal mine.

However, next year the company will resume operations of Padcal mine and it should go back to where it was before.

The Silangan project which is slated to open in 2016 is also in the pipeline and should the Padcal mine continues to deliver the same metals until 2016, PX could be a catch at a price below 11.

Meantime, let the selling continues.

Source: PSE, COL data

¹http://www.bworldonline.com/content.php?section=Corporate&title=PLDT-issues-P8.8-B-corporate-notes&id=58889

²http://www.tribuneonline.org/index.php/business/item/4132-pldt-finishes-$16-b-capex-for-network-upgrade-early

³http://208.184.76.175/Article.aspx?articleId=846339&publicationSubCategoryId=66

⁴http://www.sunstar.com.ph/bacolod/local-news/2012/09/18/bizmen-ask-aquinos-help-botched-ali-capitol-deal-243434

⁵http://business.inquirer.net/83100/chile-seeks-philippines-help-in-geothermal-devt

⁶http://www.4-traders.com/ALLIANCE-GLOBAL-GROUP-IN-6499126/news/Alliance-Global-President-On-Track-to-Meet-20-2012-Net-Profit-Growth-Target-15202188/

⁷http://business.inquirer.net/82808/2nd-resorts-world-to-open-in-entertainment-city-in-2016

⁸http://www.bworldonline.com/content.php?section=Corporate&title=Retailer-sets-stage-to-bankroll-expansion&id=58884

⁹http://www.malaya.com.ph/index.php/business/market/11952-sm-to-buy-grocery-chains-to-hasten-expansion

¹⁰http://www.marketwatch.com/story/us-consumers-businesses-taking-it-slow-2012-09-23