On the last trading day of the year, will the PSE be up or down?
December 28, 2007
Today, December 28, is the last trading day of the Philippine Stock Exchange (PSE). On Monday and Tuesday next week, the markets are closed for New Year celebrations, and the first trading day in 2008 is on Wednesday, January 2.
Is the market set to close higher today because portfolio managers and traders might try to “window dress” their portfolios in time for year-end 2007?
A bit likely. In a previous article, we explained that Window Dressing is a strategy employed by fund managers wherein they try to make their portfolio look as attractive as possible before presenting it to clients or stockholders.
In the days leading up to the end of the quarter or the year, fund managers would purchase recent winners while selling old holdings at a loss, in an attempt to show that they own the best-performing stocks of the period.
Exercise your Metro Pacific warrants and earn 335%
December 12, 2007
Metro Pacific Corporation (Stock Code: MPI) announced that its stock warrants acquired through tender offer or purchased in the open market can now be exercised and converted to MPI common shares.
The stock warrants, issued on October 23, 2006, can be converted to MPI common stock at a price of P1.00 per share until December 14.
With MPI’s stock closing at P4.35 on December 12, if you converted those warrants, you are are technically earning P3.35 per share or 335% from the conversion price. That, however, is still gross of associated fees, taxes, and the warrant acquisition cost.
