The new year started off with a subdued cheer as share prices gained on the first day of extended trading. The PSEi main index went up by 25.12 points, or 0.56% higher from last year’s close, to end the session at 4,397.08 on very thin trading. Total value turnover plunged to PhP1.77bn, or just one-third of the previous session’s value, as most investors were still out of the market afterthe recent holidays. Among the most active gainers were infrastructure and construction-related stocks DMC (+2.7%), EEI (+3.5%), CMT (+5.0%), and HLCM (+5.3%) on expectations of robust construction activities and projects in 2012. Meanwhile, Gatchalian-connected small-cap stocks PHES (+35.2%) and WIN (+34.0%) rallied sharply on speculation that it might raise cash from the sale of pieces of property that the group owns.

Expect to see more directionless trading with thin volumes today as investors acclimatize and familiarize themselves to the extra market hours. The volume and price hike in infrastructure and construction related stocks could signal the start in a sector-wide rally for the first half of this year. Consider taking long positions in HLCM, CMT, RCM, DMC, MPI, and EEI.

October imports grew slower as incoming shipments of electronic products used for processing and assembly fell on weaker demand. Total imports for the month reached US $5.0bn, or 2.3% higher from October 2011 but 1.1% less on a month-on-month basis. Imports of electronic products, which make up one-fourth of the total bill, dropped 20% annually, with its sub-group semiconductors shrinking 17.6% for the year.

source : PhilStock Equity.