Daily Market Notes November 27, 2009
November 27, 2009 by dragon
PSEi 3,044.97 DOWN 44.85
value php 66,895,317,835.00
value sans smc block: P2.6B
DOW 30.69 +0.29% 10,464.40
NASDAQ 6.87 +0.32% 2,176.05
S&P 500 4.98 +0.45% 1,110.63
Stocks drop 3-5% around the world as Dubai World, the government investment company burdened by $59 billion of liabilities, sought to delay repayment on much of its debt.
Goldman Sachs Group Inc. analysts estimated potential credit losses at HSBC related to Dubai World may be $611 million, and $177 million for Standard Chartered, according to a research report released today. The impact on both banks will be “manageable,” the analysts wrote. Sumitomo Mitsui Financial Group Inc., Japan’s second-largest bank by market value, may be owed at least $225 million by Dubai World, according to people familiar with the matter.
Dubai borrowed $80 billion in a four-year construction boom that transformed the sheikhdom into a regional tourism and financial hub. It suffered the world’s steepest property slump in 
the global recession, with home prices dropping 50 percent from their 2008 peak, according to Deutsche Bank AG.
U.S. markets are closed for Thanksgiving and opened for a shortened session on Friday, which is also Black Friday. Black Friday is the day where retailers should earn big from holiday shoppers.
Meanwhile, the rise of SMC/B to 69 buffer the fall by a mere 3 points on the index, with a few gains from ICT AC BEL.
Top Frontier, whose shareholders include Roberto Ongpin, a San Miguel director and former trade minister, said it bought a 28% stake from the SMCs retirement fund at 75 pesos a share. Top Frontier also said that its purchase may lead to a tender offer for the rest of San Miguel.
Gold Sinks to $1160 level, while crude is demolished back to $74.
MER that rose to 220 intraday sank back to 209, maybe due to initial speculation that its earlier rise was attributed to association with SMC's, speculating that the latter's move may be related to a tender for MER minority shareholders that included smc. But bloomberg's report clarified that the ascent of SMC's shares were due to Ongpin's buy in.
Top index losers were led by ALI PX TEL MBT, whose combined losses added up to 40 lost psei points.
In this day of losses, foreigners were net buying these big caps.
It is far too early to tell whether our Tuesday trading day (Monday holiday, no trading) will open with a big bounce, as Wall Street trades half day today, and a lot of uncertainty would still be in the air.
TOTAL FOREIGN BUYING : P 700,370,367.13
TOTAL FOREIGN SELLING : P 456,919,746.68
SPECIAL BLOCK SALES:
SAN MIGUEL CORP. "B" 55,904,133 @ P75.00 4,192,809,975.00
55,904,133 @ P75.00 4,192,809,975.00
SAN MIGUEL CORP. "A" 51,153,824 @ P75.00 3,836,536,800.00
51,153,824 @ P75.00 3,836,536,800.00
80,375,000 @ P75.00 6,028,125,000.00
80,375,000 @ P75.00 6,028,125,000.00
80,375,000 @ P75.00 6,028,125,000.00
80,375,000 @ P75.00 6,028,125,000.00
80,375,000 @ P75.00 6,028,125,000.00
80,375,000 @ P75.00 6,028,125,000.00
80,375,000 @ P75.00 6,028,125,000.00
80,375,000 @ P75.00 6,028,125,000.00
———————
TOTAL (P64,283,693,550.00) %MKT 96.095
=====================
NO. OF ADVANCES: 29
NO. OF DECLINES: 80
NO. OF UNCHANGED: 64
NO. OF TRADED ISSUES: 173
NO. OF TRADES: 9,361
LEGEND:
NFB : Net Foreign Buying
NFS : Net Foreign Selling
PHP : Philippine pesos
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