MARKET ADVISORYHistorical References[

Yesterday was an important day for the Phisix. Closing above 1630 enabled the market to break a disturbing trend over the previous three days. There should not be any problem from this point to 1700. The Phisix must breach 1700, because only then can the market break out of an eight month declining trend channel. Petron, on the back of a 100% jump in net income, led yesterday's rally, today, it could very well be San Miguel, having seen a 69% rise in revenues in the third quarter compared to the second quarter. All indications point to a more healthy and competitive SMC in the years to come.

SAN MIGUEL. Sale of Coca Cola and Nestle has given the company the hedge it needs against interest expense, not to mention a few extra bucks in interest income. Revenues for the first nine months of the year was up 22% compared to last year. The company is slowly regaining its luster after going through disastrous management between 1986 and 1998.

ROBINSONS LAND. A sleeper. Revenues for the first nine months of 1998 was 29% higher than that of 1997's. Revenues from malls and hotels (read:recurring) make more than 50% of sales rung up. Has opened two new malls this year, and occupancy is virtually full.

PETRON. Still looks pretty good. Upside potential is around 5.80. The only thing that could derail continuous rise would be the disclosure as to how net income doubled for the nine month period ending September 1998 when revenues remained virtually the same. Just be quick and nimble.

JG SUMMIT. Looks finally ready to break above P1.50. Nothing stands between P1.50 and P1.98. Peso appreciation will have a positive impact on its bottomline because of its foreign exchange denominated loans.

The Phisix has been on an extended run since Oct 6. Just to let you get a perspective, in the last fifteen trading days we’ve had, the Phisix has only seen 2 down days, and in the course of this rally, the market has appreciated by almost 50%. Yesterday’s reversal could be the start of a correction, possible drop zones, 1430 and 1360. No need to worry, long term upward trend would hardly be affected even if we fall to 1360. Best strategy is still to get into stocks, see an appreciation of say 10% to 15%, take it out. Do not feel guilty about taking profits, your objective should not be to double your money, only to beat the prevailing rate for deposit substitutes, which now stands at about 14% less withholding tax of 20%, and if you can do that in one or ten trades over 2 weeks or 54 weeks, you’ve done your job.

ROBINSON’S LAND. Has been a relative disappointment given the kind of market appreciation we’ve been getting, but an excellent company nonetheless. Company is expected to duplicate the excellent performance it had for the 2^nd quarter of the year, where earnings grew 63% quarter on quarter from P193M to P316M. Liquidity is a problem.

UNIVERSAL ROBINA CORP. Operates what we would term as a franchise type of business, where they enjoy a near monopoly of its market, and where no real alternative to their products exists. Book value per share is P9.50.

METRO PACIFIC. More twists than a good suspense film. Company has refused comment on rumors of PLDT takeover, and everyday brings a new element into the mix, and that is why the stock will continue to show extreme volatility in the coming days, an ideal situation for the excitable traders with quick feet. Rumors aside, if the deal is closed, it will be an excellent addition to MPC’s line of business.

RFM CORP. Has been getting hammered because of accusations that they smuggled in 50,000 metric tons of wheat into the country, that they are hoarding sugar to the detriment of the consumer, so on and so forth. Bottomline is, they are one of the biggest food conglomerates in the country, and the stock is trading at support of 4.60. These issues they have with congress will blow over, and its just a matter of time before the stock takes off. Trust us.

The Phisix succumbed to profit taking late in the trading day, which wiped out its early 20 point gain. This may be the correction phase analysts have been looking for since Friday of last week. The Phisix could possibly drop to 1437 and then to 1360 by the end of the week. Stocks trading at profits should be cashed in, the correction will allow investors to come back in at prices more reasonable than what they closed at yesterday.

FILINVEST DEVELOPMENT CORP. Stock traded 13M shares yesterday. That is the fifth consecutive volume spike for the stock, and the price has only gone up 10% from its historic low. The only problem being its business prospects for the year, they're not good. The stock is a technical dream though, and it could surprise a few people. If for some reason it breaks below 1.20, you are advised to cut the loss.

RFM CORP. A reasonable buy at 5.00. One of the biggest reasons why RFM has been underperforming the market is that the company has lately been on the bad side of investor sentiment due to its plan to delist two of its publicly listed subsidiaries, SLT and SFI. The company is one of the biggest consumer conglomerates in the country, and other than SFI, its subsidiaries are doing excellently in terms of revenues, plus if they do manage to close a deal involving the sale of SFI to a foreign investor, they will end up with a significant amount of cash in their pockets. Support below 5.00 is at 4.50, if 4.50 does not hold, it could go to 3.00.

The Phisix had another strong showing last Friday, which caught not a few people unawares. The Phisix broke clean of the initial major resistance level of 1400, which means there will be no roadblocks impeding the market’s progress until we reach 1600. The market may pullback today due to a little bit of profit taking, but it does not look like it can drop any further than 1320. Take advantage of weaknesses in individual stocks, especially those that are expected to report good earnings for the third quarter, namely, SMPH, TEL, RLCB, AMC and JFC. This just in, The US Federal Reserve has cut interest rates twice in the last two weeks, the second one coming as a complete surprise, the good news is, there will most probably be another one in the coming months, which will give currencies a further boost.

ROBINSON’S LAND. Has been making steady progress since September 11. The four tops since that day have been, 1.46, 1.50, 1.52, and 1.58. Has always erroneously classified as a property company, but really earns its money the SMPH does, through rents and merchandise consumption by the ordinary person. Book Value of 3.50. Debt to equity ratio of .88. More like a 2 month stock than a one week stock.

ABOITIZ EQUITY VENTURES. The stock looks ready to attack the 1.80 resitance level. It has stayed just above its new support level of 1.34 for the last two days and looks ready to take off. A word of caution though, a drop from this level will take it back to 1.24. Fundamentally sound company, has already earned 60% more as of June 30 compared to what they earned for the same period last year. Debt to equity ratio of .24 is one the lowest.

ICTSI. An excellent buy at 1.58. still a good deal at 1.70. The stock has always had a tendency to looks a dead fish inspite of what the market is doing, but when it starts its move, much like in January, its hard to get it to stop. Price has gone up 14 cents since our last recommendation, but it could be only the beginning. Resistance lies at 1.90, and 2.50 after that. Corporate fundamentals are intact, first half earnings dropped a miniscule 1% from last year, but several overseas ports are about to start making major contributions this year.

FILINVEST DEVELOPMENT CORP. We are generally discouraging investments in property companies because of the slump, but every now and then, there are movements that can be taken advantage of. FDC’s sales have been suffering, there have been unconfirmed reports of lay-offs, but the stock traded 9M shares last Friday, and 5M the day before, the stock’s historic low was 1.20, so at 1.32, it has for all intents and purposes been unchanged. A big move is about to occur, perhaps taking its cue from similar situations as CMP and FLI.

METRO PACIFIC. Has just broken through of resistance at 70 cents, next resistance is firmly pegged at 90 cents. The stock might pick up from Friday’s climb and appreciate towards this next resistance.

EAST ASIA POWER. Had a 3.2M volume spike last October 13. The price is still around its historic low. Problem is the lack of trading activity in the stock, but could turn out to be a sleeper.

The Phisix went up for the fifth consecutive day yesterday, and looks headed for the 1400 level. However, a correction is inevitable and that is why we will provide you with stocks that have gone up to resistance levels, and may well be on their way back down.

AYALA LAND. Resistance is at 8.00. Too little room left for a meaningful trade. A more reasonable entry price would be 6.50.

BELLE CORPORATION. Resistance at 86 cents. If it breaks out of its resistance, then the next target would be 1.00, however, if it starts going down, it could drop to 73 cents, which would make it an attractive buy.

SM PRIME. Resistance at 6.30. Interested investors are advised to get in when the price nears its support level of 5.40.

BENPRES HOLDINGS. Closed at resistance of 2.90. If it breaks above that, the next target would be 3.25, however, if it starts dropping, it could go back to 2.50.

FILINVEST LAND. Resistance at 1.32. A break above that will take it to 1.60, a failure to do so will bring back down to 1.16.

JG SUMMIT. Resistance at 1.02, Almost hit that level yesterday, closed lower. If it breaches its resistance, its next resistance won’t come in until 1.20. If it fails, its going to 90 cents.

PETRON CORP. Resistance at 3.50. Almost there, a break above that would push the price to 4 pesos, but a reversal could take it back down to 2.90.

It was another strong performance for the Phisix yesterday that has propelled it back to the 1250 level. We are knocking at the door of the market’s short term resistance of 1265, and this time, we just might break it. If we manage to break out of it, we should see the Phisix appreciate to 1350 without any hitches. Points of concern: Resistance for ALI at 6.70, Resistance for AC at 5.40, Resistance for SMPH at 5.50, Resistance for MBT at 150, Resistance for Metro Pacific at .67. These stocks either closed at their resistances, peaked at their resistances, or are darn near them. Any number of failures in these stocks could mean the difference between sustainability or false promise.

JG SUMMIT. Traded 4M shares yesterday. Historic low was 79 cents, so the stock has for all intents and purposes been flat. Extremely strong financial standing. One of the biggest conglomerates in the country with interests in real estate, banking, food, telecommunications, petrochemicals etc.

BENPRES. Has formed a short term double bottom with resistance at 2.80. Another biggie that has been left behind by the recent market rally, might be on the verge of following the general trend.

SELECTA. Traded 518K shares yesterday. Another food company poised to report good 3^rd quarter earnings. Perenial problems for a stock like Selecta is the lack of liquidity and the disparity between the bid and the ask, but if you can get the stock at 1.32, then you’ve got an excellent company at an excellent price.

The Phisix has managed to stay above the 1150 support level for the second consecutive day. Yesterday’s final surge led by Metrobank could very well be the beginning of a short term rally towards 1250 again. If the market is unable to keep its head above 1150, then it could drop to 1100. We are expecting third quarter financial numbers to start trickling in, and we are expecting several corporations to report better than anticipated growth rates, mostly from the consumer related industries, and these corporate results will act as a stimulant to the next market rally.

SM PRIME HOLDINGS. Trading just above support of 4.55. High PER of 20X is offset by spectacular growth in earnings year on year. The company is expected to match its income growth rate of 20% for the third quarter of 1998. A no-brainer at 4.75. Just in case it goes down, cut loss point should be anything below 4.55.

BENPRES. Another stock trading at short term support of 2.50. Historic low is at 2.38. Excellent company with excellent fundamentals. Lack of liquidity works to its advantage everytime a rally occurs. A bargain whether you are a short term player or a long term investor.

BELLE CORPORATION. You could see the stock drop to 71 cents, but not much else. Trading near historic low, resistance at 82 cents allows for a 15% profit potential.

METRO PACIFIC. At 57 cents puts it virtually at its historic low, being a favorite of short term players allows the stock to appreciate quickly enough and highly enough for a reasonable short term gain, a drop below 55 cents though, and the stock is in deep trouble.

FILIVEST LAND. Stock has consistently gone up and down within the area of 98 cents and 1.10, although property companies have generally been bad stock picks in the last twelve months, short term profits could be generated by taking advantage of small ten percent movements such as those seen in FLI, if it drops below 98 cents, next support won’t kick in until 90 cents.

Stock Symbol	Estimated Buying Window	Sell Short Term	Sell Medium Term	Sell Long Term
Ayala Land Inc (ALI)	P 5.50 – 5.70	P 6.50 – 8.50	P 9.00 – 12.00	P 16.00 – 20.00
Ayala Corp. (AC)	4.00 – 4.50	5.50 – 8.50	9.00 - 12.00	16.00 – 20.00
Meralco B (MERB)	70.00 – 75.00	85.00 – 90.00	95.00 – 100.00	110.00 – 130.00
DMCI Holdings, Inc. (DMC)	.65 - .75	.80 - .85	.85 – 1.00	3.50
Metro Pacific Corp. (MPC)	.55 - .60	.70 - .80	.90 - 1.30	2.50 – 2.90
Petron (PCOR)	2.50 – 2.70	3.00 – 3.20	3.50 – 4.50	6.50
Belle Corporation (BEL)	.70 - .75	.80 - .85	.90 – 1.30	2.50
PLDT (TEL)	650.00 –700.00	800.00 –850.00	900.00	1,050.00
Filinvest Land Inc. (FLI)	.95 - .99	1.10 – 1.20	1.35 – 1.95	2.65 – 3.95
Philippine National Bank (PNB)	24.00 – 28.00	40.00 – 60.00	70.00 – 80.00	90.00 – 150.00
SM Prime Holdings, Inc. (SMPH)	4.50 – 4.90	5.50 – 6.30	7.00	7.00 – 7.50

Domestic economic fundamentals remain good (lower than expected inflation, positive GDP growth rate, stable financial institutions, trade surplus, stable employment rate, etc.) The US rate cut will alleviate the current crisis. U.S. Congress is beginning to grasp the merits of funding the IMF as well as government intervention in addressing the current crisis. A global intervention is imminent. IMF Managing Director Michel Camdessus declared that the Philippines is the least affected and will be the first country to recover from the Asian financial turmoil.

The market will remain volatile (every dip will be met with a technical rally). However at or near 1170 level, most stocks specially blue chip stocks are drastically undervalued and oversold. We recommend an accumulation at this level. Blue chip stocks and some selected growth stocks always lead the rally.

The Phisix took a 32 point dive yesterday, ending at 1337. Resistance was met at the 1260 area on Wednesday, and the Phisix was not able to break through of it yesterday. Its is going to have to drop another 60 to 70 points before it finds any support to bounce from, so we are expecting two to three more days of decline depending on how much it sheds per day. For the first time in the last seven days, decliners outnumbered gainers, indicating a gradual shift back to a sellers oriented market. Blue Chips such as Ayala Land, Ayala Corp, Metrobank and Benpres have weakened since hitting their 30 day highs, and are projected to continue along this path for the short term.

UNIVERSAL ROBINA CORP. The stock is virtually back at support. Has been living in a trend channel that finds its bottom at 1.64 and its top at 1.84. Hit a low of 1.66 yesterday and immediately closed at 1.70, looks like the beginnings of another set of price increases that will take it back to 1.86.

BENPRES. Looks like its ready to attack 3.00. a word of caution though, anytime it starts to go down, the wisest course of action would be to let it drop to around 2.50 before you start buying in.

ICTSI. Trading just a little above historic low of 1.30. Net income for the first half of the year declined marginally by 2%, from P190M in 97 to P186M this year. Two new overseas ports (Ensenada Container Terminal Mexico and the Karachi Int’l Terminal Pakistan) will become operational late this year, giving the company two new sources of foreign denominated revenues.

First half performance of existing ports in Argentina and Veracruz Mexico were excellent, with income jumping 107% from P70M to P145M.

JG SUMMIT. Took a dive yesterday if only because fickle short term players wanted to profit by shorting the stock, on the pretext that Cathay Pacific will be flying PAL’s domestic routes. Actually deserves a little more respect than that. Big conglomerate has interests in Banking Telecoms, Food, and Real Estate. Tremendous long term potential.

Ayala Corp. ------P4.45
Ayala Land Inc. - 5.70
Belle Corp. ------- 0.72
Benpress --------- 2.46
DMCI ------------ 0.80
Fil-Invest Land -1.00
Ionics ------------- 6.40

Metrobank ---- P130.00
Meralco B ---------78.00
Metro Pacific ------ 0.56
Petron --------------- 2.60
SMCB ------------- 47.00
SM Prime ---------- 4.90
PLDT --------------800.00

The announcement of the U.S. Federal Reserve to cut interest rates by one quarter of a percent hardly created a stir in regional stock markets, including our own. The Phisix was up another 21 points yesterday, and the surprising thing was, PLDT was unchanged, and Ayala Corp and Land were down one fluctuation each. What took up the slack were the banks. Its always a sign of health to have a rotation of stocks that go up. Market looks like its going to go down today, but that shouldn’t be a cause for concern, because the market’s outlook looks positive going towards the end of 1998.

UNIVERSAL ROBINA CORP. The stock is virtually back at support. Has been living in a trendchannel that finds its bottom at 1.64 and its top at 1.84. Looks like its ready to go up to 1.84 again in the short term.

BENPRES. Looks like its ready to attack 3.00. a word of caution though, anytime it starts to go down, the wisest course of action would be to let it drop to around 2.50 before you start buying in.

First half performance of existing ports in Argentina and Veracruz Mexico were excellent, with income jumping 107% from P70M to P145M.

The Phisix has formed a reverse head and shoulders pattern that is generally interpreted as a bullish signal. However, there will be no confirmation of an initial 200 point rally until the neckline is breached, and the neckline is firmly set at 1200. If we manage to crawl above 1200 in the next three to five days (of course, with minor corrections here and there), then we are staring at a short term top of 1400. If this scenario comes true, then the rise to 1400 will set the stage for another series of rallies that should pump the market up to 1700 by the end of the year.

METRO PACIFIC. Back from the dead. After looking like it was on its way to penny stock status, it managed to bounce back and looks like its ready to participate in this market rally. Recommendation to buy at 57 cents, initial profit target is at 67 cents. Company has been in every acquisition rumor of the last two weeks. Always on the buying side of any merger and acquisition talk, an indication of its financial strength.

BELLE CORPORATION. Something is going on. Yet another 20M share block sale by Merrill Lynch. Serious accumulation. A dramatic rise may be in store. Stock is still trading near historic low, so little need to be concerned about buying an expensive stock from a historical standpoint.

FILINVEST LAND. Enjoys very good support at 1.00. Since August 24, has closed at either 1.00 or a little bit higher. Initial resistance is at 1.18. If it breaks below 1.00, it could bounce from 90cents, but the minute 90 cents is breached, it will drop to 74 cents.

IONICS CIRCUITS. Inching ever more close to its historic low of 6.00. Good support at that price, but if it breaks through, overall plan calls for an immediate exit.

Here is no reason to be overly concerned that yesterday’s 40 point drop is the start of another series of declines that takes us below the recent low of 1070. We are in a phase of consolidation. A gap at 1100 needs to be filled, and it looks like its going to happen this week. Attention in PLDT is beginning to simmer down, and the price has dropped more than 20% from its recent high of P1015, we strongly urge traders to watch PLDT closely, It has a little bit of support at 770, which is why it wouldn’t come as a complete surprise if it rallies today, but if it fails again, it could be at 700 in no time at all, which makes for an excellent entry point. Ayala Corp broke through its low of 4.20, fortunately, there is support at 3.90, if that fails to hold, we could be looking at a 75 centavo drop before it hits its next support. A reminder to traders, buy stocks at or near supports, so that if things go wrong, you can get out with minimal damage to your principal.

AYALA CORP is trading near support of 3.90. Red light goes off the minute it breaks below that level, but as long as it stays above that, it stands a reasonable chance of rebounding to 5.00.

BELLE CORPORATION. Something is going on. Merrill Lynch has had crossed transactions involving chunks of 12 to 17M shares each day for the past seven days. The stock has hardly moved from its support of 70 cents. Either a sharp drop is forthcoming, or a sharp rise, the bet’s on the latter. 80 cents looks conservative, but there is a bit of resistance, on the other hand, there is only the abyss after 70 cents.

MERALCO B. Closed on the high side yesterday. A day on the upside is all it needs to form a bullish reverse head and shoulders pattern, Support at 75 pesos, a violation of that line will take it further down to 70 pesos. A rebound on the other hand can take it up to 86 pesos.

IONICS CIRCUITS. Inching ever more close to its historic low of 6.00. Good support at that price, but if it breaks through, overall plan calls for an immediate exit.

What’s in store for the market today? The Phisix shall consolidate between the 1100 support level and the 1200 resistance level. Direction will largely be provided by PLDT, where activity remains high in the wake of the SEC rejection of the Board’s proposal to put in a plan to block a takeover bid. Final resolution to the Philippine Airlines planned liquidation will also have an effect on the exchange, if only for its psychological value.

Average value turnover over the last 4 days has been P1B, a very healthy sign that money has begun to come in to the market.

AYALA CORP is trading near its recent low of 4.20. A double bottom waiting to happen, if it does, we are looking at a very fast rise to P5.00. Solid company with solid fundamentals. PER used to be high at 14X, now that figure has been effectively halved, while earnings remain robust. Debt to equity ratio rating of A. A little more promising and a little less risky at this point in time than ALI.

BENPRES HOLDINGS. Fell to new lows, again. P2.50 is a reasonable price to pay since book value per share of the stock is effectively twice that amount. Resistance is at 3.00, support at 2.40, a good deal wouldn’t you say? A good rule of thumb, Good solid companies that go through drops of ten percent or more in a single day usually manages to make it up the same day, or the day after.

SM PRIME. Holding steadily at 5.00, strong support is at 4.85, resistance on the other hand is at 5.00. Might look sluggish at times, with hardly any movement, but when it starts showing signs of life, it is usually too quick to take advantage off. Suggested mode of action, buy into the stock today. Cut the loss when it breaks below 4.85, take your profit when it hits 5.50.

BELLE RESOURCES. Something is going on. Merrill Lynch has had crossed transactions involving chunks of 12 to 17M shares each day for the past seven days. The stock has hardly moved from its support of 70 cents. Either a sharp drop is forthcoming, or a sharp rise, the bet’s on the latter. 80 cents looks conservative, but there is a bit of resistance, on the other hand, there is only the abyss after 70 cents.

METRO PACIFIC. Practically at its historic low of 57 cents. Gap at 65 cents. An absolute buy at 58 cents, an absolute losing proposition below 57 cents. We could see the stock bounce from its current level to attack the 65 cents. Which represents a decent 12% ROI.

There are several indications that the market may have peaked, and may be looking for several days of decline before it resumes its rise. First, PLDT filled the gap at 790 and closed at a level considered to be a moderate resistance 810. Second, the Phisix has a gap at 1100 that needs to be filled. Third, Ayala Land Inc. has a gap at 5.00. Ayala Corp. has a gap at 4.40, and PLDT has a gap at 705. Fourth, the market may see an early rally that takes it too 1182, possibly even 1190 and fail because it happens to be a strong resistance. If the market manages to be strong enough to ignore these danger signs and stay above 1190 for several days, the Phisix could very well attack the 1300 level, but keep in mind it will eventually have to come back to close some holes.

BENPRES. Has hit an area where it has been unable to break through in the past. An excellent buy at 2.95 if only because it is near ultimate support of 2.90. Buy the stock at 2.95 cut the losses when it sees 2.85. Initial resistance is at 2.20 which is where traders ought to take profits.

IONICS CIRCUITS. Traded 1.6 M shares. Highest volume in two months. Only 10% above support and historic low of 6.00, gap at 7.00 which it can easily reach. Excellent fundamentals. Cut loss point is 5.90.

METROBANK. Near historic low of 127. Initial resistance is at 140, a good 10% on the upside, after that, the next target would be a gap at 174. Cut the loss when it penetrates the 127 support level.

MUSIC SEMICONDUCTOTS. At 1.14 quite neat the support level of 1.08, traded 5M shares last Tuesday. Profit target is set at 1.32, while the cut loss point should be put at 1.06. Company has virtually no debt, and looks ready to improve on its dismal 1st quarter performance.

BELLE CORPORATION. Buy at .75 cut loss point ought to be set at .71 cents, while profit looks like it should be taken when it goes to .82 cents.

The Phisix took another dive last Friday, breaking yet another support at 1087. Next support level is at 974, which probably means more of the same for today. Sentiment remains very negative, and as if that was not enough, IATA had to place Philippine Air Lines on suspension for failing to settle US$30M in obligations, a severely damaging piece of news. Foreign brokers have been unrelenting in selling down yesterday's 27 point rise could potentially spark a recovery that could initially take the Phisix back to the 1300 level. Yesterday's recovery started with San Miguel, investors apparently took the proposed sale of Coca Cola as a positive development. There are compelling reasons why the Philippine stock market should not have been sold down the way it has, unfortunately, in the midst of panic, logic and reasons are the first to go out the window.

Technically, we are above support of 1170, another breach of this support level could take us to 1100, which is strong support, however, if we manage to stay above this level, then it would be safe to say that we have seen the worst. Recommended course of action remains accumulation.

AYALA CORP is trading at an eight year low. Badly sold down, support at 5.00 and then 4.50. Solid company w ith solid fundamentals. PER used to be high at 14X, now that figure has been effectively halved, while earnings remain robust. Debt to equity ratio rating of A.

AYALA LAND. Newest project Westgrove Heights is reportedly selling like hotcakes, which shows us, that in the middle of the property slump, the name Ayala is still able to generate significant revenues. Support at 5.60, next support at 4.50.

BANK OF THE PHIL. ISLES. One of the more slower moving stocks in the exchange, but like MBT, rock solid fundamentals makes it an integral part of a long term stock portfolio geared for maximum growth and minimal risk.

BENPRES HOLDINGS just reported decent earnings for the first half of the year P1B. Low debt to equity ratio for conglomerate of its size (.90). Qui etly makes its money from ABS, MER, BAYANTEL, etc. Only drawback is the stocks liquidity, not much, on the other hand, that could turn out to be a good thing.

METROBANK. Absolutely no reason to believe reports of its impending demise due to unmanageable NPL\rquote s, Has one of the lowest NPL rates in the industry at 8%, in addition, has continually infused money into loan loss provision. \par SM PRIME. Has stayed true to its fluctuations again. Support at 4.90, resistance at 6.00. Earnings this year will at least be 20% higher than 1997\rquote s. Only problem is its high PE multiple.

( back )

Yesterday’s 27 point rise could potentially spark a recovery that could initially take the Phisix back to the 1300 level. Yesterday’s recovery started with San Miguel, investors apparently took the proposed sale of Coca Cola as a positive development. There are compelling reasons why the Philippine stock market should not have been sold down the way it has, unfortunately, in the midst of panic, logic and reasons are the first to go out the window. Technically, we are above support of 1170, another breach of this support level could take us to 1100, which is strong support, however, if we manage to stay above this level, then it would be safe to say that we have seen the worst. Recommended course of action remains accumulation.

AYALA CORP is trading at an eight year low. Badly sold down, support at 5.00 and then 4.50. Solid company with solid fundamentals. PER used to be high at 14X, now that figure has been effectively halved, while earnings remain robust. Debt to equity ratio rating of A.

BENPRES HOLDINGS just reported decent earnings for the first half of the year P1B. Low debt to equity ratio for conglomerate of its size (.90). Quietly makes its money from ABS, MER, BAYANTEL, etc. Only drawback is the stocks liquidity, not much, on the other hand, that could turn out to be a good thing.

METROBANK. Absolutely no reason to believe reports of its impending demise due to unmanageable NPL’s, Has one of the lowest NPL rates in the industry at 8%, in addition, has continually infused money into loan loss provision.

SM PRIME. Has stayed true to its fluctuations again. Support at 4.90, resistance at 6.00. Earnings this year will at least be 20% higher than 1997’s. Only problem is its high PE multiple.

October 30, 1998	October 28, 1998	October 21, 1998
October 19, 1998	October 13, 1998	October 9, 1998
October 7, 1998	October 2, 1998	October 1, 1998
Septmeber 24, 1998	September 23,1998	September 22, 1998
September 17,1998	September 14, 1998	September 8, 1998