Gomer F. Tan

January 23, 2012

PAX - Paxys, Inc. sold its stake in business process outsourcing (BPO) for P91 million.  There is news of a new venture or investment that the company will undertake.  52 week high is P2.30 per share.  Initial target is P2.10.

DISCLOSURES

SMC- Cash dividend declaration of P0.35 per share with ex-date on February 1, 2012.

ANI- The parties proceeded with closing of the acquisition by Black River Capital Partners Food Fund Holdings (Singapore) Pte. Ltd. (Black River) of 76,293,595 shares of the Company from the secondary market (the “Sale Shares”) and 49,192,500 primary shares from the proposed increase in authorized capital stock of the Company (the “Subscription Shares”) one (1) day ahead of the 20 January 2012 Closing Date indicated in the Investment Agreement dated 29 December 2011.

The Company also received the resignation letter of Mr. James Tiu as Treasurer effective immediately. Mr. Dennis Sia, who is the Vice President for Finance, shall assume the functions and responsibilities of Treasurer until the Board of Directors appoints a successor.

MAC -pursuant to the Share Buyback Program approved by the Corporation’s Board of Directors on 16 July 2010, the following shares were repurchased from the market:

Date of Transaction  Number of shares Price/share   Outstanding shares after transaction
20 Jan. 2012             50,000                    PHP 2.80         1,238,774,000 

Treasury shares after transaction

 11,226,000

By Claire S. Quiray

WEEKLY OUTLOOK – JANUARY 24-27, 2012

POSITIVE TREND TO CONTINUE WITH TAPERED STRENGTH 

WEEK-ON-WEEK:   

      PSEi                           =    4747.90 from 4,613.83        +134.07 points or 2.91%

      52-WEEK RANGE   =        3,705.18 - 4,747.90

Although market strength is tapering off, share prices are expected to continue rising as shown by technical indicators.     

Week-on-week, PSEi closed higher by 134.07 points or 2.91% at 4747.90 with moderately lesser but ample trades of over Php6.2b daily average.   The market’s  rally was further fuelled by favourable foreign and domestic economic fundamentals last week. Aside from anticipation of a healthier corporate profits, Banko Sentral’s  25 basis points interest rate cut was the latest in the local front.  Meanwhile, the efforts of the European government to resolve their debt crisis were somehow easing fears and investors’ concerns.    

Foreign Investors were still in a buying binge.  This week, less than Php2b worth of shares were added to their accumulated buying balance which is now at Php10.96b.  The  2011 net foreign buying was at Php56b.

These foreign inflows could have been helping the market defy its overbought condition.  For nearly a month now, the market has been trading at overbought levels (a sell signal) but is refusing to reverse, (except for brief profit takings), an indication that there will be a continuation. 

All momentum indicators are still pointing upward but it will be good to note that the strength of the market is also tapering off.   Currently, RSI is still overbought at 77 level (14-d).  

Support  is at 4500.  

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