WealthSec Updates
WealthSec Updateswelcome updates from Wealth Sec and Phil Equity updates
Greetings from [url=https://www.wealthsec.net]Wealth Securities Online!
[/url] Wealth Securities, Inc. (WSI or the Company) is a leading member broker of the Philippine Stock Exchange. The Company was incorporated in 1986 primarily to engage in the business of broker and/or dealer of securities. Through the years, WSI has consistently ranked among the top local brokers in terms of value turnover. As such, the Company was adjudged by Euromoney as the “Best Domestic Securities House in the Philippines for the Year 2000.” WSI is among the highest-capitalized brokers in the industry with paid-up capitalization of P320 million. The Company has access to a diverse client base, both retail and institutional investors, including high net worth individuals. WSI is backed by a research group composed of analysts with combined equities market experience of more than two decades. The group covers the mid-to large capitalization stocks but is also known for their keen eye in spotting small companies with excellent fundamentals and large growth potentials. To further improve customer service, WSI has recently developed an online trading platform which provides stock brokerage services through the Internet. Customers can now have access to real-time quotes, mark-to-market account & security balances, online order placement, and transaction tracking. Customers who avail of this service will also have access to a wealth of trading information, up-to-date news, analysis and charting tools. The objective of this online trading facility is to empower customers with tools to help them make well-informed investment decisions and to allow for faster & more convenient execution of trades. With this new service, WSI intends to be positioned at the forefront of the growing online trading business. We will be providing you with daily market updates and weekly articles from "Philequity Corner", which can also be found on the Philippine Star every Monday. We hope to enlighten you with insights from our experienced traders and outperforming fund managers! Thank you!
Greetings from Philequity Management, Inc.
COMPANY PROFILE Philequity Management, Inc. (PEMI) is an investment management company established in 1993. We are committed to helping you achieve your long-term financial objectives by offering an array of mutual funds suited to your unique needs. PEMI is proud to be the investment manager and principal distributor of Philequity Fund, Inc. (PEFI), the Philippines' best performing equity mutual fund. PEFI has been awarded by the Investment Company Association of the Philippines (ICAP) as the best performing equity fund in the 5-year and 10-year categories for the third straight year. STRENGTH IN NUMBERS: THE BENEFITS OF MUTUAL FUND INVESTING The power of a mutual fund lies in its ability to pool together funds from so many different investors. Imagine a thousand investors each with P5,000 to invest who decide to pool their funds together. That’s already a pool of P5 million! Now imagine that instead of just investing P5,000 each, some investors put in P10,000, P100,000 or even P1,000,000. The size of the collective pool would even be bigger. And when it comes to investing, there is strength in numbers. P5,000,000 can gain better access to more diversified investment instruments than P5,000. A mutual fund is a vehicle that allows investors to combine their resources. Because of this, you don’t need a large amount of money to gain access to a well-diversified portfolio of top-performing investments. A mutual fund makes this possible. Here are some of the key benefits of investing in mutual funds. Professional Management A mutual fund is managed by an experienced, full-time fund manager who is focused solely on analyzing the financial markets and seizing market opportunities as they present themselves. By investing in a mutual fund, you benefit from the fund manager’s experience and market insight. Potentially Higher Returns By pooling together the funds of thousands of investors, a mutual fund is able to access potentially higher yielding investments that require large minimum investment amounts. Thus, investors are able to access potentially higher yields that may not normally be available to them due to the size of their individual funds. Moreover, the fund manager ensures that the mutual fund generates the best possible returns for the given level of risk of the mutual fund. Diversification Simply put, diversification means not putting all your eggs in one basket. This is especially important in investing. Through proper diversification, losses in one investment can be off-set by gains in another. In the process, overall risk is minimized. Investing in a mutual fund provides you with immediate access to a diversified portfolio of funds. By virtue of the size of the pool of funds, the mutual fund is able to purchase many different investment securities and diversify. Liquidity You may have your shares in a mutual fund redeemed at any time and just need to wait a maximum of four (4) banking days to gain access to your funds. Safety Mutual fund operations are governed by the Investment Company Act whose implementing rules and regulations specify particular limits and constraints in the investment activities of all mutual funds. The Securities and Exchange Commission (SEC) sees to it that all mutual funds comply with these statutory regulations. Moreover, mutual fund companies are regularly audited by an independent auditor. The assets of the mutual fund are held by a third-party custodian bank. Start Investing Now… To know more about how Philequity mutual funds can help you bring closer to your financial objectives, you may call a customer sales officer at 689 8080 or visit our website at http://www.philequity.net/. We look forward to having you as one of our valued clients. Thank you
Market Comment 3/15/10PSEi 3,076.79 +3.88/0.1263% Val. P2.280B
Local share prices ended slightly up on selected blue-chip issues. Aboitiz group continued to rise for the third week. Property developers DMCI, Vista Land Inc. and Megaworld also contributed much of todays gain. Market breadth was negative with losers outnumbering gainers, 57 to 42; 67 issues were unchanged. Foreigners were net sellers by P271M. a.. SM development Corp. (P6.00 +3.45%). The third largest property builder rose and may reach a new high on speculation of an outstanding sales growth. b. Aboitiz Equity Ventures.(P13.50 +5.88%),Aboitiz Power Corp.(P12.75 +6.25%). The Power generation firm continued to rise on speculation of a nationwide power shortage.
Philequity Corner (March 15, 2010)
Head & Shoulder Fake Numerous times, pure market technicians have been proven wrong in calling market tops and bottoms. In the case of the market’s recent correction, the technical picture did not look good at first. As a result, most investors, who closely follow the charts but ignored the overall macroeconomic picture, sold prematurely in anticipation of a slippage below the 2,800 level. The expected downward spiral, however, failed to materialize and the 2,800 support held. Immediately after, the market reversed its course and the PSEi again moved past the 3,000 threshold – all in less than a month. Similar to the US markets, many were swayed to short, thinking that the S&P, Nasdaq, and Dow will lose traction and eventually break down. Many failed to understand that the US economy is continuing to turn the corner. While it is expected that the US would continue to face some headwinds, the general direction of their macro fundamentals is turning positive. Same with charts, the long-term uptrend is up, but pullbacks are expected along the way. In basketball, there’s a move called the head & shoulder fake. In boxing, there is a head fake. Roach asked Pacquiao to move from side to side, to go in and out, and to employ head fakes to confuse Clottey. In the stock market, there is a pattern called the head and shoulder formation. When the pattern moves in the opposite direction, a false breakout or false breakdown occurs. This can be called the head and shoulder fake. PSE Index Support and Resistance Whipsawed Two months ago, the PSE Index registered a trendline break when it went below 3,000. We said that 2,800 would be a strong support area (See “Bulaga!,” January 25, 2010). While others were already calling for a top, we said that this pullback is just a correction and that the long-term direction continues to be positive for stocks. Indeed, the PSE Index found support at 2,800 after making an intra-day low of 2,787 last February 9. A sharp V-shaped rally ensued afterwards lifting the PSE Index back to its previous resistance of 3,130 which was the high registered both in December and January. With the rebound appearing stretched, the index may now need to consolidate over the next few days before attempting to take out the 3,130 high. A common mistake among traders is that they follow the market based solely on charts. Ignoring the “real story” behind the underlying fundamentals is detrimental to any investment. The problem lies when traders completely sell out. Trading becomes costly for investors if their anticipated technical sell signal suddenly reverses. As a result, they buy back at a higher price and get whipsawed in the process. Technical versus Fundamental Technical analysis seeks to identify trends and patterns in charts which rely solely on the price movements of a particular stock or index. It assumes that emotions and market psychology are fully embedded in the price chart. Technicians look for well-known patterns such as head and shoulders and double top, ascending triangle, cup and saucer among others. Some also look at indicators such as Moving Average, RSI, and MACD which are all derived from the relationships of price and volume. Because of the convenience it offers, some investors totally rely on the technical analysis for their investment decisions with total disregard for other factors. Fundamental analysis, on the other hand, looks at the business (for stocks) or the economy (for market) at the basic financial level. Financial statements commonly serve as the tool in performing different sorts of analyses to arrive at an intrinsic value for a listed company. Given the intricacies involved, some investors find it cumbersome to do their own research. To us, fundamental analysis is the core of our investment decision-making. Technical analysis serves as a guide post to time our buying or selling decisions. Both investment tools should work hand in hand and must be employed by investors. Combined, they have worked well in managing our funds. False Reading of PSEi PLDT recently declared cash dividends (i.e., total of P141/share), with last Friday as the ex-date. With PLDT accounting for 23% of the PSEi, the drop in its share price due to the dividend adjustment pulled the index lower. If the closing price of PLDT last Thursday was adjusted to include the cash dividend of P141/share, the PSEi would have been up last Friday. The huge cash dividend and the large weight of PLDT gave a false reading of the PSE index. Perhaps, PSE officers can look into this. Bull Intact As we said in our Investors Forum, our central thesis is founded on the recovery of the US and the world economy. As their economy improves, the stock markets will move up to reflect these developments. We believe the bull market is intact. But corrections are expected over the horizon. Investors should hold or sell some holdings, but not all. Corrections are integral in a bull market. The extent and length of dips are, however, difficult to predict. This is where the challenge lies to every investor. We reiterate that investors should hold on to core holdings in this bull market (See “The IPIS Theory”, 21 February 2010). Unless the fundamental picture changes, the trek towards 1,250 for the S&P and 3,300 for the PSEi remains on track.
Market Comment 3/16/10PSEi 3,085.13 +8.34/0.27% Val. P2.647B
PSEi shares were slightly up on late rally by property stocks. Ayala land Inc. and Megaworld managed to post gains before the run-off but most issues were unchanged on lack of leads. Dow Jones Industrial Average was just a bit higher as investors were concerned of Moody's warning about the AAA rating of the U.S. Market breadth was negative with losers outnumbering gainers, 51 to 49; 73 issues were unchanged. Foreigners were net sellers by P262M. a.. SM development Corp. (P6.10 +1.67%). The property developer may have a sale of 5.25B pesos of homes this quarter, half of its earnings of 2009. b. Pacific Online Systems Corp. (P16.25 +3.17%). The company reported that their profit doubled to 263M pesos last year.
PSEi 3,088.05 +2.92/0.09% Val. P3.32B
Local shares ended flat as the PSE index continued its consolidation phase. Overseas, the DJIA index rose 44 points after the Federal Reserve left benchmark rates unchanged. Market breadth was positive with gainers outnumbering losers 54 to 49; 68 issues were unchanged. Net foreign buying amounted to P10M while total value traded was P3.32B, 2.65B yesterday. a.. Belle Corp. (P1.72 unch) reported a 2009 net income of P386M, +87% yoy. b.. ISM Communications Corp. (0.0525 +7.1%) soared after San Miguel Corp. disclosed plans of acquiring Eastern Communications. c.. MRC Allied Industries, Inc. (1.08 +P3.9%) rose as the company finalized a P1.38B deal with foreign investor Global Emerging Markets Investment Advisors, Inc. (GEM) to help its expansion into the power generation industry.
Market Comment 3/18/10PSEi 3,100.95 +12.90/0.42% Val. P2.807B
Local stocks rose led by Meralco, BPI and Ayala Corp. The index managed to reverse from loss in the last few minutes of today's trading. U.S Stocks gained as the Federal Reserve still hold interest rates near zero. The U.S Senate passed a $17.6B jobs bill Wednesday and sent it to President Obama for approval. The said bill could bring unemployment down from 9.7% level. Market breadth was positive with gainers outnumbering losers, 60 to 54; 55 issues were unchanged. Foreigners were net sellers by P76M. a.. Ayala Corp. (P295.00 +0.85%). The largest conglomerate is planning to raise up to P10 billion worth of seven-year denominated bonds. b.. Petron Corp. (P6.10 +8.93%). San Miguel President Ramon Ang said they will exercise their option this year to buy 51% of Petron and will make a tender offer to buyout the refiners other shareholders. from Wealth Securities Online!
PSEi 3,097.23 -3.72/0.12 Val. P2.96B
The Philippine index traded flat as market players digested news about the impending discount rate hike by the Federal Reserve. Overseas, the DJIA index rose and hovered above 10,800 for the first time since Oct 2, 2008. Market breadth was negative with losers outmuscling gainers 56 to 37; 67 other issues were unchanged. Foreigners bought a net total of P117M. a.. DMCI Holdings, Inc. (P13 +6.1%) soared on speculation it will increase its dividend payout after posting huge profits. b.. Aboitiz Power (P12.25 +2.1%) climbed as the company plans to bid for the Angat hydro power plant.
Uy welcome wealth sec and philequity.
Nga pala Im sure may connection ka sa higher up and I would like to ask 2 things. Actually natanong ko na ito before but walang responce. Ang tanong ko lang naman mostly is 1. On Philequity PSE Index - - - Bakit ang laki laki ng fees nito even higher than the Philequity stock? Considering na passive fund naman ito. 2. Lastly, Is there in Philequity history that the fund gave a dividend? Be it cash or stock? Thanks and hope to hear from you on this
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