Financial Market Update

Financial Market Update

August 4-8, 2014

DateOpenHighLowLastChange %3-Aug-1443.70543.70543.70543.7050.00%(MON)4-Aug-1443.70544.01743.6243.665-0.09%(TUES)5-Aug-1443.66543.72643.49543.7180.12%(WED)6-Aug-1443.71844.05143.5643.8160.23%(THURS)7-Aug-1443.81644.1443.7244.0770.59%(FRI)8-Aug-1444.07744.2743.93943.985-0.21%

USD/

PHP

Open41854.041855.041856.041857.041858.041859.043.70543.70543.66543.71843.81644.077High41854.041855.041856.041857.041858.041859.043.70544.01743.72644.05144.1444.27Low41854.041855.041856.041857.041858.041859.043.70543.6243.49543.5643.7243.939Last41854.041855.041856.041857.041858.041859.043.70543.66543.71843.81644.07743.985Last41854.041855.041856.041857.041858.041859.043.70543.66543.71843.81644.07743.985

Stock Market

August 4-8, 2014

DateOpenHighLowLastVol.Change %4-Aug-144119.214179.894119.214176.461.12M1.28%5-Aug-144176.684178.54161.874171.14843.02K-0.13%6-Aug-144170.174172.74154.564157.86656.05K-0.32%7-Aug-144156.554176.34156.554166.5426.24K0.21%8-Aug-144159.334159.334118.934129.1395.87K-0.90%

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L

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S

H

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R

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S

Open41855.041856.041857.041858.041859.04119.214176.684170.174156.554159.33High41855.041856.041857.041858.041859.04179.894178.54172.74176.34159.33Low41855.041856.041857.041858.041859.04119.214161.874154.564156.554118.93Last41855.041856.041857.041858.041859.04176.464171.144157.864166.54129.1Last41855.041856.041857.041858.041859.04176.464171.144157.864166.54129.1

P

DateOpenHighLowLastVol.Change %4-Aug-146873.477005.716873.476998.37121.32K1.51%5-Aug-146998.587000.366958.49697476.80K-0.35%6-Aug-146971.596980.126939.366948.9736.24K-0.36%7-Aug-146944.76978.776943.516955.2178.18K0.09%8-Aug-146930.946930.946867.526880.3454.17K-1.08%

P

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i

Open41855.041856.041857.041858.041859.06873.476998.586971.596944.76930.94High41855.041856.041857.041858.041859.07005.717000.366980.126978.776930.94Low41855.041856.041857.041858.041859.06873.476958.496939.366943.516867.52Last41855.041856.041857.041858.041859.06998.376974.06948.976955.216880.34

Close

Last41855.041856.041857.041858.041859.06998.376974.06948.976955.216880.34

Monday

PSEi soars 1.51% but fails to stay above 7,000

sentiment is showing a good sign with the release of corporate earnings, but the market has been moving in a trading range between 6,750 and 7,000

Investors focused on the long-term, shrugging off the trend in overseas markets and putting the interest rate increase by Bangko Sentral ng Pilipinas in the back burner

"The market already discounted the global developments and interest rate adjustment which was not really that big"

Harry Liu, president of Summit Securities Inc.

investors also sought bargain stocks that were heavily battered in the past week

Raul Ruiz, RCBC Securities Inc. research head

Last Thursday,the central bank raised its policy ratesby 25 basis points from record lows as a preemptive response to signs of inflation pressures.

On Monday, the PSEi breached the 7,000 territory, a level unseen since July 7 when it hit an intra-DAY HIGHof 7,016.71. Before that the index reached an intra-day high of 7,028.50 on May 31, 2013.

Fears of further declines on Wall Street kept Asian shares mostly on the defensive on Monday,

concerns over geopolitical tensions eclipsing US data that argued against an earlier start to the Federal Reserve's rate-tightening cycle

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Tuesday

Inflation, valuation depress PHL shares, drag PSEi down 0.35%

TheMARKETyielded to profit-taking following a sharp rally Monday.

Companies reporting first half results gave some investors reason to buy, CORPORATEearnings were not that impressive to push the index higher amid high valuations

The higher-than-expected JulyINFLATIONalso added to the selling pressure

Inflation quickened to 4.9 percent in July, the fastest in nearly three years,

FOOD PRICESandCOST OF UTILITIES, the Philippine Statistics Authority (PSA) report

Manny Cruz , Asiasec Securities Inc. market strategist

SHARE PRICESon the Philippine Stock Exchange traded on the weak side Tuesday, after a strong rally Monday to 7,000 on the main index, as investors decided to pocket gains on concerns over inflation and price-to-earnings valuations.

The higher-than-expected JulyINFLATIONalso added to the selling pressure, Cruz said. "Inflation came out way above the consensus of 4.6 percent," he noted.

Inflation quickened to 4.9 percent in July, the fastest in nearly three years, onFOOD PRICESandCOST OF UTILITIES, the Philippine Statistics Authority (PSA) reported Tuesday.

The PSEi will continue to consolidate in theNEAR TERM, Cruz said, with support pegged at 6,908 and resistance at 7,150.

"CORPORATEearnings were not that impressive to push the index higher amid high valuations," he added. VS, GMA News

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WEDNESDAY

PHL shares fall again by 0.36% on Ukraine, inflation concerns

"AsianSTOCKSfell broadly on Wednesday after a slump on Wall Street and tensions over Ukraine smothered markets with a mood of risk aversion," Reuters reported.

The higher-than-expected JulyINFLATIONalso added to the selling pressure

investors cashed in on gains after declines overnight onWall Streetfurther soured market sentiment after the high inflation in July

People are either staying on the sidelines orcashingingainsdue to lack of motivating news

1)PHILIPPINESHARE PRICEStumbled for the second straight day Wednesday as investors remained wary of the high inflation outlook and ongoing geopolitical tension in Ukraine which dragged the US market lower overnight.

2)Because of slump on Wall Street and tensions over Ukraine smothered markets with a mood of risk aversion, index moved along with Asian neighbors but losses were kept to a minimum

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THURSDAY

PSEi marginally higher by 0.09% despite profit-taking

Profit-taking in select stocks tempered the gains carved by the PSEi as concerns over high valuations and the tensions in Ukraine came back into the market Thursday.

Investors positioned in stocks that reported good earnings results earlier in the day

investors, driven by corporate earnings, bought into the market.

Investors are taking positions ahead of companies that have yet to report second quarter earnings

Market driven by the mining and oil sector, and holding companies.

Profit-taking in select stocks tempered the gains carved by the PSEi as concerns over high valuations and the tensions in Ukraine crept back into the market Thursday.

Investors positioned in stocks that reported good earnings results earlier in the day

"Those issues that had good reports eventually suffered from profit-taking

"Concerns on valuations and geopolitical concerns in Ukraine and Israel put a downward pressure on the market,"

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FRIDAY

PSEi drops 1.08% on geopolitical tension in Ukraine, Middle East

Heightened geopolitical tension in Ukraine and in the Middle East caused global market sell-off

Investor started pocketing gains or turned cautious due to negative sentiment

started selling due to high valuations as the market is trading at a P/E ratio of 19.5 times

Profit-taking in select stocks tempered the gains carved by the PSEi as concerns over high valuations and the tensions in Ukraine crept back into the market Thursday.

Investors positioned in stocks that reported good earnings results earlier in the day

"Those issues that had good reports eventually suffered from profit-taking

"Concerns on valuations and geopolitical concerns in Ukraine and Israel put a downward pressure on the market,"

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CORPORATE UPDATES

PLDT invests EUR333Mil (Php20Bil) for a 10% stake in Rocket

PGOLD Branching out: operation of puregold minimarts plus joint venture with Lawson to operate convenience stores in the country

JFC: Targets expansion to Malaysia and Indonesia

IN BRINGING MOBILE PAYMENT TO EMERGING MARKETS

JFC plans to introduce its flagship Jollibee chain to the Malaysian and Indonesian markets in the next

two years to take advantage of the ASEAN Economic Community starting 2015

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Sources

http://www.gmanetwork.com/news/story/373299/economy/business/psei-soars-1-51-but-fails-to-stay-above-7-000

http://www.gmanetwork.com/news/story/373463/economy/business/inflation-valuation-depress-phl-shares-drag-psei-down-0-35

http://www.gmanetwork.com/news/story/373632/economy/business/phl-shares-slip-in-2nd-successive-session-on-ukraine-inflation-concerns

http://www.gmanetwork.com/news/story/373808/economy/business/psei-marginally-higher-despite-profit-taking

http://www.gmanetwork.com/news/story/373989/economy/business/psei-drops-on-geopolitical-tension-in-ukraine-middle-east

http://www.investing.com/currencies/usd-php-historical-data

http://www.investing.com/indices/phs-all-shares-historical-data

http://www.investing.com/indices/psei-composite-historical-data

http://www.gmanetwork.com/news/archives/economy/business?p=1

https://ph3.colfinancial.com/ape/final2_starter/ResearchCompUpdates/Downloads/2014-08-08-PH-S-TEL.pdf

https://ph3.colfinancial.com/ape/final2_starter/research/downloads/2014-08-07-PH-D.pdf