PSE Daily Recap: PSEi Riding High, as Cebu Pacific Crashes Down - November 3, 2010

PSEi registered a new all-time high to close at 4,381.86, up by 40.12 points or 0.92%, while Cebu Pacific bucked the trend, falling even lower below its IPO price at 119.80, after going as low as 116.

The banking sector dominated today’s session, as banking stocks contributed the bulk of the 40-point gain of the index led by MBT BPI SECB, as the Peso continued to gain strength against the dollar, approaching the key support level at 42.

The strong performance of the market is likely to continue. However, event risks are likely to present itself later in American trading, as the US Congressional elections unfold.

Despite all these bullishness in the Philippine Stock Market, Cebu Pacific continues to lose ground, probably as “impatient investors” dump this stock, as it failed to meet the usual perky IPO performance. CEB is likely to head even lower, with the worst case scenario for 2010 at the psychological 100 level.

Still, demand for Nickel Asia and IP Converge appears to be very strong. It remains to be seen though, if these two new IPOs will deliver.

And as always, be mindful of your trades, as we are on new uncharted territory. Wohoo!