Until today, I'm still thankful that I leave early the market before it turned down rapidly. Some says, today is the Christmas time on the market, all are on bargain price! Indeed, but if your 50~80% of your portfolio got stuck to this current situations, you can hardly sleep well for sure nowadays.

As an outlook for August 15, 2011, we're on extreme volatility in global equity markets, which started after a recent credit rating downgrade of the US, spilled over to the local market sending share prices on a roller coaster ride last week. The PSEi main index fell 115.82 points, or 2.61% lower week-on-week, to close at 4,321.73, on increased trading volume. The average daily value traded went up to PhP6.92bn, up 46.1% from this year’s daily average value of PhP4.77bn, an indication of investors’ reaction to the market’s overall volatility. Sectoral averages were mostly negative as expected, save for the Mining & Oil sector which posted a hefty 7.9% for the week on the back of rising gold and precious metals in the world market. The uncertainties caused by debt-concerns from US and Europe have resulted in investors seeking the “safer” refuge offered by gold assets.

Expect the market to remain volatile for a good part of the coming week as global investors try to digest the possible impact of a slowing US economy and a much weaker Europe to world growth. Eyes will still be on the US but sights could move to emerging Asia to see if it can assume and pick up the current slack.

Foreign Portfolio investment net inflow in July jumped to US$300m, a 20-fold increase from US$14m in July last year, but declined by 15.3% from US $354m month-on-month. Investments into PSE listed shares went up 97% to US$822m year-on-year, representing 61% of total FPI. The bulk of inflows went into property, banks and holding firms. The balance of FPI were in Peso government securities and time deposits.
(source: PhilstocksEquity)