Market chill makes dancing frenzy for the wise investor

By ZOSIMO T. LITERATUS
Zeitgeber LC, Investments Division

The drop in the share prices yesterday might be an alarming one but such plunge in market value was concentrated to only a few companies traded in the Philippine Stock Exchange with more than half of the listed stocks were simply left out in the cold without bidding movements.

In the Financials, only 12 of 29 companies (about 41 percent) suffered price drops, almost equally spread among banks and other financial institutions. Fourteen out of 47 Industrials take price plunges, representing almost 30 percent of those listed in the group.

Only eight of 36 holding companies suffered the cut in market prices, while the Properties dipped almost 24 percent.

Listed Service companies neither suffered more with only nine out of 38 companies (23.7 percent) got bid downward. Mining and oil companies took the cut in six of 26 (23 percent).

The 12.3% price plunge was an average that indicated certain companies took a bigger spiral in market displeasure.

But for investors who know the better companies among the many of lesser make, the spiral should find them waiting with a lot of cash to buy in. A few select companies are simply priced right now almost for a song. And a wise investor should know that it is time to sing. If Warren Buffett knows about this, he could dance with frenzy.