Things are looking great for the Philippines!
Amid the looming European implosion comes great news. European investors are retracting investments from the crisis-struck southern EU axis after 5 bailouts (Portugal, Ireland, Greece, Spain, and Cyprus) and finds haven on the stronger northern European bloc. Capital money is expected to trickle off to the ASEAN and Latin America as the capital flight continues on talks of bailing out a 6th country, Slovenia, and the rest of EU's peripheral countries.
The peso sits at 41.68 to the dollar, its highest in 4 years. Local news feeds are abuzz with talks about the Philippines' overall credit rating being raised to BB+ by Standard&Poor's. That means the Philippines will have lower borrowing costs and a more attractive investment standing. Add to that the projected 3Q quantitative easing from the US, which will positively impact our commodity markets as the foreign currency dips to competitive levels.
As such, almost everything in the local stock market is up. Each and every one of my favorite stocks is green, and I'm personally having trouble putting my money on the stock market right now :\.
After a long suspenseful battle with BDO, I sold the stock at Php64.00, at a loss of course. I felt sad, because for the first time I did not succeed in averaging down on the price to get a marginal profit (averaging down is when you buy an already bought stock at an even lower price to reduce the cost of buying). But the price line is highly unpredictable, I just decided to sell it - MWIDE and SCC were more favorable at that time.
To my surprise, however, BDO issued me a stock rights offer for 10 stocks worth Php48.60 each. I opened my portfolio the next day, and suddenly I'm in the green with BDO, at 31.28%. A great lesson learned - some stocks issue stock rights that can help compensate any loss you incurred from previous trading mishaps.
Later on I sold my positions in MWIDE (Megawide - who partnered with SM in constructing the Grass Residences) and SCC (Semirara Mining - who is currently waiting for the president to sign the EO on mining, like everybody else). to recover my Php800.00 loss on ACE.
Right now, I'm invested in BDO at a very light and short position, and RCM (Republic Cement), which is up +5.0% at early morning trade today. Both are small positions because I need free money while waiting for MEG to dip below it's support level of Php2.26. ;). Once it does, it's a buying spree :p .
Hopefully next week opens up better opportunities for me. *Interview later with a potential employer.
-hopeful-
