PSE stocks performance: January – June 2009

Philippine stocks are currently on the upswing even though the global economic recession is still hurting many investors worldwide.

The Philippine Stock Exchange Index (PSEi), a composite of 30 stocks traded in the Philippine Stock Exchange used to track the general movement of market prices, ended the first half of the year up as much as 30%.

In July 3, the PSEi closed at 2,431.34, a 29.82% increase from the initial index in January 2009.

The Mining and Oil sector continues to be the best performing industry in the exchange, with its value increasing by 76.46% in just 6 months. Example of stocks belonging to the Mining and Oil sector are Philex Mining Corp. (PX); GEOGRACE Resources Philippines (GEO); NiHao Mineral Resources International (NI); and Lepanto Consolidated Mining Company (LC), among others.

The Industrial sector is second with the most increase, rising by 57.24% year to date. Stocks in the Industrial sector include Manila Water Corp. (MWC); Meralco (MER); First Philippine Holdings (FPH); Jollibee Foods Corp. (JFC); San Miguel Corporation (SMC); and Splash Corp (SPH), among others.

The Holding Firms sector is third best, rising by 43.49% year to date. This is followed by the Property sector (29.17%), Financials sector (17.39), and Services sector (17.27%).

If this performance will be sustained, the year 2009 will be a profitable year for stock traders and investors — a a complete reversal of the losses incurred in 2008.

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8 thoughts on “PSE stocks performance: January – June 2009”

  1. Collection company Portfolio Recovery Associates is reporting double digit revenue growth and its stock is soaring. Steven Fredrickson, the company’s CEO, tells CNBC how he plans to keep up the momentum.

  2. @elmot, no one can really predict which industry sector will be on the rise. The banking sector has been badly hit by the recession and if the economy will pick up and people and businesses start taking loans again, most probably banks will benefit. The property sector has had its boom in the last 4 years. I’m not sure if it will again pick up in the next couple of years.

  3. 4:00pm Tuesday 14 July 2009 Philippine Stock Exchange Index 2492.3 (-0.36%)

    How would you describe the sentiment in the market when people buy it up strongly at the open, sell it down strongly in mid-session bringing it back to yesterday’s levels, and then buy it up again to close around 9 points above yesterday’s close. Among headline stocks, TEL, BPI, FPH, and ALI were the strongest. MBT and AC were in there very strong at the open but both invited profit taking at mid-session.
    To read more please click:

  4. 9:30am Wednesday Philippine Stock Exchange Index 2593.52

    I am struggling with the other kind of fear. When we speak of fear and greed in markets, greed normally connotes that you are buying stocks with abandon because you are sure that you will make a lot of money. On the other hand, fear implies that you are selling your portfolio without consideration for value because you are afraid that you will lose everything. It takes a different sort to move against psychology like this, and that is why we have great investors like Franklin Templeton and John D. Rockefeller who gave substance to their word when they said “buy when there is blood on the streets,” and we all know they made tons of money. The other side of this adage is – “when things look great, it is too late.”

    With all these ideas being processed in my mind, I am afraid of being frozen to inertia in this slowly moving rally. I seem to be trying to veil this procrastination with the thought that I am just being patient. However, when the market is slowly moving away from you, it may be pretty risky to simply wait for the correction. This is the fear that I am facing these days – the fear of not doing anything.

    I think that it is time to look at longer term trend in both prices and earnings. It will be quite timely because 2nd quarter earnings will soon be reported. If I look back on how prices behaved over the last 3 months, there were in fact several consolidating moves in prices. This was in mid and late April as well as in the 3rd week of June. There was also a mild pull-back at the end of June into the beginning of July. Unfortunately, I was looking for a deeper correction which is not likely to happen yet because the great majority of investors appear to be very light in their positions and have yet to load up on their portfolios.

    With this in perspective, my gut feel tells me that headline stocks such as Ayala Corp. (AC), PLDT (TEL), and Globetelecom (GLO) are still cheap today compared to its own long term trend in price. Consumer stocks like GMA7 or GMAP, Splash (SPH) and Pepsi (PIP) are also worth the bet at these prices. Banks like Metrobank (MBT) and PNB will likely show higher earnings down the road because of low interest rates and steady earnings from OFW remittances. Jollibee (JFC) which is usually expensive will likely maintain its value and move better as the year wears on.

    I think the appropriate strategy the next few days is to add to positions with stocks that are showing firmness in price at these levels. It appears to me that investors are steadily putting these stocks to their bottom drawers which means that support will be rather strong should prices even go down. Very few investors have the inclination to sell or pare down portfolios because interest rates are very low and there is no point in having all that cash lying around.

    I had said in earlier posts that the trend is your friend. It is useless to fear when friends are around. Well, friends should really stick together. In my case, I will stand by this friend because market signals are showing that this trend will be around for quite sometime.

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