3 "Faces" of the Market

This is the first time that we see the 3 faces of the market come together. They are: foreign fund managers, local investors and the “re-born” players.

The movement of PLDT (TEL – P2,545.0) suggests that foreign funds are still loading up on Philippine stocks. You don’t usually see big-caps rose by 5% in one day. This move cannot be reversed overnight. What’s good for PLDT is good for other big-caps. I expect follow through buying on other index heavyweights in the coming weeks.

Local investors on the other hand have been pushing up select 2nd and 3rd liner stocks. This week, we saw Philippine Realty (RLT – P0.62) and Kuok Philippine Property (KPP – P0.58) take the front seat. Next week, I expect other 2nd and 3rd liners to follow. I am not too clear on what valuation measures investors are using in buying up these two counters. However, you can’t go against sentiment. These stocks will continue to run.

The third face of the market are the “re-born” players. Alliance Tuna (TUNA – P2.85) gained almost 100% from its offering of P1.34. This has brought back old players to the market.

So with all these coming into to play, expect the market to continue its run.