News / Philippine Stock Market

Banco de Oportunidad By Bonner Dytoc September 21, 2008

One of the hardest hit stocks last week was BDO as it admitted it has some exposure to Lehman Brothers. Together with MBT, both banks dove nearly 10% in one day when the market heard about this. In fact, we heard stories that there were people who were withdrawing all their money from BDO.

The rumor is false as there is no bank run in any branch of BDO. In fact, BDO has rebounded from its momentary “lapse” with a 2-day reversal stopping its decline.

The MACD is still late in confirming if the downtrend is over but we can wait and observe. The first area of resistance that we would expect will be at 39. Should BDO slowly rise to that area, the gap down created last week would be covered and the sentiment would turn bullish. After 39, the next resistance area is at 40.50, where the 65-day moving average is placed.

It’s best to wait things out before buying.