March 2011 has been a volatile month for the Philippine stock market. The first half of the month was bearish due to crisis in Libya, and the earthquake, tsunami and nuclear meltdown crisis in Japan. On the other hand, there was a big jump of the index on the latter part of the month as triggered by the announced merger of PLDT (PSE:TEL, NYSE:PHI and Digitel (PSE:DGTL) and sustained by the news of improving economy of the US and easing concern in Libya and Japan. In the end, the Philippine Stock Index gained by 7.66% to 4055.14 from 3766.73 on Feb. 28. Our fund’s NAV, on the other hand, gained by 2.44% to Php1.082 as influenced by PLDT and Globe, which are significant chunk in our portfolio.
In the month of March, we purchased additional shares of CEU, FEU and SHNG. We also added more shares of PLDT (TEL) just for dividend play (but with long-term investing perspective), which had its dividend ex-date on March 11, 2011. We also added Pure Foods Preferred Shares (PFP) and BDO Leasing & Finance, Inc. (BLFI) to our portfolio. On the other hand, we unloaded all ACPR holdings while still trading at premium since Ayala Corp announced that it is about to redeem these shares on July 2011. At its price, there is no sense holding this stock until redemption date even if it has two more quarterly dividend payments coming. We also took advantage of the traders ‘ speculative buying of Globe stocks and sold all shares that we bought in Feb. 2011 at a pretty good price. Even if the announced acquisition of Digitel by PLDT seems good for the industry, this is still purely speculative and, I think, that its supposed effect to Globe’s performance is not coming soon.
Top 10 Holdings as of March 31, 2011;
FPHP, Globe Telecom, Inc., Manulife Financial Corporation, Sun Life Financial Inc., Philippine Long Distance Telephone Company “Common”, Centro Escolar University , Shang Properties, Inc., Far Eastern University, Cash, Petron Corporation (Preferred)
Year-to-date Dividend Income: 1.60% (Net of taxes. All income are re-invested)