Market Situationer (18-22 June 2012)

Government Securities
The Bureau of Treasury awarded last Tuesday’s 20-year Treasury Bond re-issue in part. The BTr chose the 6.09% ceiling in accepted bids. This level approximates the 6.0904% PDST-F rate in the market, a collection of firm bid rates from the major market making banks. The re-issued FXTN 20-18 fetched an average yield of 6.024%, slightly higher than the 5.94% in the secondary market. Total tenders for the partially awarded debt sale amounted to P14.098 billion. The BTr issued P6.65 billion out of the P7.5 billion offer.

Click this link to learn more about this week's Track Beauty, Gesa Felicitas Krause

The successful election of pro-bailout Greek parties, as well as expectations of additional stimulus by the Fed, improved market sentiment. Local GS bond yields were slow to react, but momentum built up by mid-week. The big, local players went on a buying frenzy on Wednesday morning, probably due to 1H 2012 window-dressing.Yields for FXTN 20-17 shed 9 bps to reach a low of 5.88% on Wednesday morning. The 10-year FXTN 10-55 and the 24-year FXTN 25-8 each dipped by around 5 bps, amidst surprisingly robust trading volumes. The P37.66 billion worth of secondary market GS trades on 20 June (Wednesday) is the largest single day tally since March 2012.

Parking in Makati

Since I work in Salcedo Village, parking options are a-plenty - at a steep price. 

I can opt to use the slots at (1) the PBCom Building (around Php 130), (2) one of the vacant lots in San Agustin Street (not sure about the cost. You have to leave your keys with the parking guys), (3) Valero Open Parking, or (4) Velasquez Park (Php 40 for the first two hours, Php 10 in the succeeding hours). 

Click the photo above for the Salcedo Village map. (Photo from Wikimapia)

 I chose Velasquez Park, frankly, because it is the least congested. A tree-lined parking complex is more alluring than a drab skyscraper.

It is not sustainable to drive my car all the way to Makati during the work week. The Manila traffic situation could be unforgiving. The daily  fuel costs for the 30 kilometer trip from Quezon City to Makati and back could eat up a sizable portion of my humble salary. Since parking spots are scarce commodities in the Central Business District, the corresponding fees cost an arm and a leg.

To save cash, I usually park my car in Trinoma, ride the MRT to Makati, and walk the 1 kilometer-or-so distance to my office.

Read: "Trinoma Park and Ride"

Read: "Six Ways to Survive a Rush Hour MRT Ride"

This is a perfectly ideal set-up, if not for the time constraints. The last northbound coach of the MRT leaves at approximately 10:30 PM. If one has evening engagements in Makati (a sanitized term for drinking sprees and nights out!), it will be troublesome and time-consuming to ride bus all the way Quezon City. A cab ride to Trinoma, costing around PHP 150, is almost as expensive as bringing a car and parking in Makati. 

Hence, it is more convenient to drive to the Central Business District. At times like these, comfort and convenience take precedence over monetary costs!

Cinema Paradiso Finale: The Best Movie Ending of All-Time

I have seen countless movies, most of it at the last six years, thanks to the advances of modern technology.  When asked about my favorite film, the first titles that come to mind are Das Leben der Anderen (2006) and Cinema Paradiso (1989). I have devoured numerous literature and films about espionage and war, but the aforesaid German about a Stasi spy getting involved in the private lives of his subjects is the most thought-provoking,

If I were to choose between the two movies, I would have to pick Cinema Paradiso. As a movie buff and an innate romantic, I appreciated the nostalgic flashbacks to bygone times, where films were shown in black & white. Ennio Morricone's score is timeless in capturing the emotions brought forth by the travails of the lead character.

Cinema Paradiso also has the best ending of all the films I have seen. 

If you have not watched this Italian classic yet, don't view the clip below.

Market Situationer (11-15 June 2012)

Government Securities
The Bureau of Treasury (BTr) rejected all the bids for the Treasury Bill auction last Monday. Again, market interest was on the longer end of the curve. Total tenders for the P7.5 billion offer amounted to only P6.51 billion, the lowest tally of bids this quarter. Out of the programmed P52.50 billion in T-Bill borrowings this quarter, the BTr has issued only P22.90 billion.

Stressed out? Click here to learn more about this week's Track Beauty, Kristi Castlin

Local GS yields inched lower on Monday, on news of a $125 billion credit line to Spanish banks and indications of lower third quarter local borrowings by the BTr. Secondary market rates climbed gradually in the coming days. Foreign news contributed to the somewhat dour local market sentiment, amidst (1) Moody’s credit downgrades of Spain and Cyprus, (2) the upcoming Greek elections, and (3) weaker U.S. retail sales data. The Monetary Board kept benchmark policy rates unchanged, but revised the 2012 inflation forecast a tad higher to 3.10% from 3.07%.
 

The Huawei G1000

When my old Motorola broke down in 2006, my dad gave me a no-frills Nokia 1100. At first, I abhorred the almost featureless phone. Soon enough, I grew to love it. The 1100 was durable and lightweight. Since its dated, monochromatic screen runs on top tier Li-Ion batteries, the phone could last for as long as two weeks on one charge!

In the four years that I've used the phone, I've forgotten how many times I've dropped it. Despite its noisy clicks of its keypads, I was a satisfied Nokia 1100 owner - until it got stolen on a crowded MRT coach.

The Huawei G1000. (Photo from Lazada)

I came across a the Huawei G1000 this morning. Like the 1100, it is a bare bones phone costing peanuts - Php 580! Thanks to the wonders of modern technology, the G1000 offers several value-added features like call barring/waiting/forwarding and a wireless FM radio. And of course, there's the ubiquitous built-in flashlight. 

Click here to read more about the Huawei G1000

If I don't have hundreds of phone book contacts, or feel the need to snap up random photos on my phone, I'll probably give the Huawei G1000 a shot - just for kicks.

Smartphone Reticence

I almost bought a Blackberry Curve 8520 from Sun Cellular last weekend. The PHP 600/monthly fee was enticing. The affordable package includes unlimited BBM access, Twitter, Facebook and Sun-to-Sun calls and texts. When I tried out my dad's Blackberry, I had a sudden change of heart. The screen was too small; the trackpad interface proved too cumbersome. 

The Blackberry is overrated. (Photo from IEPP298/Wikimedia)

The experience was vastly different from the time I did the initial set-up for my mom's iPad 2. With the Blackberry, there was none of that love-at-first-sight (or touch) magic I experienced with the iPad. Then it hit me, why spend additional cash for unlimited social networking access? I already have a sizable online presence, with my three blogs and active Twitter and Facebook accounts. Moreover, I am practically hooked to the net the entire day!

Nokia 5130. A lightweight, sleek, and reliable phone. (Photo from Niklas Bildhauer)

I decided not to get a Blackberry. When I ditch my trusty Nokia 5130, I'll shift to an iPhone!

Market Situationer (4-8 June 2012)

Government Securities
The Bureau of Treasury rejected all bids for last Tuesday’s 7-year Treasury Bond re-issue. Due to the paper’s illiquid nature and the lack of interest in the shorter tenors, market players submitted high bids, which the BTr was forced to reject. Had the BTr made a full award, yields would have fetched an average of 5.334%, much higher than the 5.15% PDST-R1 that morning. Total tenders amounted to only P5.965 billion.

Tired of all the financial terms, click here to learn more about this week's Track Beauty, Nikoleta Kyriakopoulou Νικολέτα Κυριακοπούλου 

Market reaction to the release of slower-than-expected May 2012 headline inflation was minimal. Announcements of a possible scrapping of PSALM-specific borrowings by the BTr, the rejection of the bond auction, and the unexpected 25 bps rate cut in Chinese interest rates spurred secondary market rates lower the rest of the week. Higher GDP forecasts for the Philippine economy could have attracted some “hot money” flows, as shown by the appreciating Peso. From 6.08% on Monday, FXTN 20-17 reached a low of 5.9175% on Friday afternoon. The 24-year FXTN 25-8, meanwhile, shed 5 bps to cap the week at 6.1525%.

Greenhorn Equities Investor

I used to read the business pages as a kid, before the outbreak of the Asian Financial Crisis. I can still remember the USD-PHP exchange rate of P23 for USD1, My aunt tried to explain the basics of the foreign exchange dynamics, but my per-pubescent self could not absorb the concepts! 

Fast forward to my finance class in college a decade later. I was taking up a business course (like everybody else). Mr. Ricky Pilar, my finance teacher, initiated a one-semester long mock-stock trading. We were required to submit a list of stocks to buy and the corresponding justifications for doing so. Even if I was a management economics major, my grasp of the equities market was practically non-existent. Despite my obtuse interest in economics, I considered finance and investment as big yawners.

Little did I know that I'll end up working for an investment house, trading government securities and tweaking spreadsheets and charts for a living.

I've developed a sensible grasp of world financial markets the past few years. Now that I've amassed some excess cash (a relatively negligible amount, really), the time is ripe to venture out of my overly conservative portfolio of savings accounts and insurance policies. 

As a bond trader, I would have wanted to delve into the market I know best. But then again, odd-lots and retail volumes aren't conducive for sizable trading gains. Besides, local government securities are near all-time lows, falling by considerably the past two years. 

The only viable investment outlet is the local stock market. With the PSEi up 20% year-to-date, it is best to wait for a good buying opportunity. For now, I'm in the process of setting up a BPI Trade account. I'm still at a loss on what particular stock to choose, in light of my unfamiliarity with the market. Thankfully, there is a wealth of information available from the following sources:

1.) Philippine Stock Exchange website

2.) Bloomberg charts

3.) BPI Asset Management Investment Research 

4.) Tsupitero (I'm not that keen on technical analysis, but the insights of Tsupitero are interesting.)

Despite the rosy prospects of growth for the Philippines, the global macro-setting is still hounded by the Euro zone debt woes, not to mention signs of a slowing Chinese economy. Even if the Philippines' consumption-driven domestic market is sizable, we're still bound to feel the effects of slower export volumes to our main trading partners and potential outflows of fickle foreign portfolio investments. The lifeblood of this nation, OFW remittances, could suffer to some extent as unemployment levels in the developed world remain high.

As the great, however fictional, Sir Harry Pearce of Spooks fame puts it, one must "tread lightly" under the circumstances.

Market Situationer (28 May - 1 June 2012)

Government Securities

The Bureau of Treasury awarded last Monday’s Treasury Bill auction in part. The BTr rejected all the bids for the 91-day T-Bills, but made a full award of the 182- and 364-day tenors. There were no major movements in the rates, as the average yields for the 182- and 364-day bills fetched 2.30% (+ 4.2 bps) and 2.50% (- 1.8 bps), respectively. The BTr issued a total of P5.5 billion out of the P7.5 billion offer.

Tired from all the financial terms? Click her to learn more about Lauren Boden, this week's Track Beauty!

The secondary market traded sideways with an upward bias the entire week. Trading bands were narrow, as market reaction to Moody’s revision to the Philippines’ credit outlook was minimal. The release of better-than-expected 1Q 2012 GDP data spurred some knee-jerk selling, but at the end of the day, changes were minimal. FXTN 20-17 traded between 6.00% - 6.06%, while FXTN 25-8 ranged from 6.15% to 6.20%.

Prometheus

From the previews, Prometheus looks interesting. Charlize Theron, Michael Fassbender and Ridely Scott - what a potent combination!