skip to main |
skip to sidebar
After six years, the decision finally comes down on former President Joseph Estrada: guilty of plunder, beyond reasonable doubt. He was cleared of charges of perjury, however.
Interesting to note the thin turnout of supporters outside the Sandiganbayan; much to the relief of local police. President Arroyo has been barricaded inside the Palace since this morning.
With these developments perhaps the local market can focus on other leads.
Follow the 'smart money', they say.
With foreign money accounting for 50-60% (from 70% in the 80's and 90's ) of volume on the Philippine Stock Exchange, It's hard to deny that wherever they go, so does the market.
Last week, Meralco led decliners in a sideways market; off from highs of Php116 pre-subprime rout to a close of Php79 today. Foreign brokers like Macquarie and JP Morgan dominated selling activity.
While other reports attribute this selling to a new system of billing; this writer opines that with the collective world market holding its breath until a new Fed rate comes out on the September 18, the Philippine bulls will have to follow local leads, which is in this case the September 12 Supreme Court ruling; all with complex consequences to the country.
With ponzi schemes and victims abounding today, lets look at what the Philippine SEC defines as likely suspects.A simple question you could ask yourself: Does the investment firm in question have products/services that it sells? Or are they just taking your money and paying your 'upline'?
Frustrated that your market is nothing but a DJIA copycat? Sick of greedy bankers a plane ride away messing up sentiment? You're not alone.
'Decouple'. Now that's a word. Let's go and tell the rest of the herd to 'quit following the Americans.' (Good luck on that.)
Equally frustrating is the lack of sophistication in small markets like the Philippines' PSEi; you can't even short stocks.
One good thing is: If you want to know where your market is headed, make it a point to know where the DJIA is going; you're bound to be closer to home than reading your own country's news.
