ANALYSIS: Going for Value
The PSE Index (PSEi) showed its deepest drop so far at 3,730.70 since 8 October 2007. The natural market forces appear to be exerting its statistical pressure on over-valued and speculatively price stocks, which experienced selling down today. Thin selling transactions obviously came from speculators who feared more downturn or liquidate their holdings for the small profit they got from yesterday's selective surge.
Strangely, stocks that were value-priced stay less affected, not being pulled too low than January figures despite the huge drop in the market in general. Its thin turnover value of 2.8 billion pesos indicates that it is not strong enough for a bull season has not set in. Interest in the market simply seems to be low.
It is a day for bargain-hunters to prowl looking for valuable stocks to add to their portfolios, and it seems that the prices were not as attractive yet for buying huge volumes.
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