ANALYSIS: Creeping Surge Ongoing

Thursday, 17 February 2011, Philippine Time Zone
Since its worst slump on Saint Valentine's Day, the PSE Index steadily creeps upward each day. And today is the third day it did its slow resurgence. Will it indicate a bull coming in the near future? Not likely.

The value turnover so far is not strong enough to push the market into a bull run. At P3 billion value, it is a far cry from its P6.5 billion level on 5 November 2010 when PSEi reached its peak of 4,413.42. Huge investor entries in October last year, as high as eight to 33 billion pesos in turnover, fueled that peak. Investor money has long been dissipated as early as the latter half of November, and only a strong surge of interest can push the market back to its record rally last year. Early this year, market turnover hovers below P5 billion, compared to the more than P5 billion during the bullish rally last year.

But the market's creeping move upwards is unmistakable, and this is the best time to collect the best-priced issues you can find. Like a treacherous snake, the stock market is coming up slowly beyond the purview of those who least expect it.