PH shares seen stuck in sideways trend

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Philippine shares are expected to further swing up and down this week as investors may continue to hunt for foreign leads given the absence of local drivers.

Astro del Castillo, First Grade Finance Inc. managing director, said that the local market will continue to move sideways while investors look for foreign leads.

“Investors will continue to borrow influences from overseas, particularly how Europe and US markets react to Federal Reserve Chairman Ben Bernanke’s speech on the Fed’s 100th anniversary on Wednesday,” Jun Calaycay, Accord Capital Equities Corp. analyst, said.

Jonathan Ravelas, chief market strategist of BDO Unibank Inc., agreed that investors may indeed remain on the sidelines as they await news that may give clearer indications with regard to the Fed’s decision on its Quantitative Easing.

“Chartwise, expect the index to range between the 6,200 and 6,600 levels in the week ahead. A break above the key resistance level of 6,750 may call the bulls back to play,” Ravelas added.

Calaycay, however, said that the market may be expected to further build a base as it consolidates between 6,380 and 6,550.

For his part, del Castillo said that he “won’t be surprised if there is profit-taking from 6,200 to 6,500.”

“Again, it [stock market]will continue to feel the pulse of investors and global fund managers,” he added.

Moreover, Calaycay noted that value turnover should begin to pick up as investors take positions on selected issues ahead of the second quarter or first-half earnings season.

“This is consistent with underlying technical value indicators suggesting activity has begun to shift from an almost discriminate selling to a consolidation with a developing accumulative bias,” Calaycay explained.

“Except for stochastic showing, the index may have entered into overbought territory last week, all other parameters offer an optimistic picture, complementing the fundamental outlook,” he added.

In the previous week, the benchmark stock index moved sideways, closing at 6,500.48, up by 0.5 percent from 6,465.28.

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Food for thought . . . ! Food for products and services – branding!

Interestingly enough, these ideas or sequence of words promote the idea of thought. To think intelligently is to surmise the obvious with the thought process that is promoted. In this specific column, the concept of branding to be food for the products and services is exactly what it requires. Commodities as products and services require branding should they wish to stay in the market over time. And unless they brand at one point of other, these products or services will vanish eventually. Branding is all about integrity, and unless these products and services become forthcoming with the delivery of whatever promise they make, they will fail the marketplace and its consumers. Value for money as said is about what it is you purchased for your hard-earned money. The value vis-à-vis the selling price or buying price is what consumers discriminate against. And Why not!

Branding is exactly what products and services require after their business models are established. To have generated an awareness over time funded by advertising monies to establish a presence is simply not enough. The sixth principle of marketing is branding. And only with branding can these products and services maintain a sustaining presence in the market place. While consumers may act impulsively at times, a sustaining effort is required for the products to succeed the marketplace. A satisfaction is required by the consumer or they will cause the end of the product with what we call “word of mouth.” However, should the brand custodians know of proper professional branding strategies; they will adapt to their sensitivities, and if necessary improve their products and services to deliver what it is their consumers will require. Integrity is the ability to be forthright with your consumers about your product or services and unless you manage this properly, you will surely fail.

Branding is all about simply the effort to deliver with consistency the brand promise, which generates integrity which makes it the brand! It is interesting that many brand manager cannot understand this simple statement and run afoul substituting advertising campaigns, pricing strategies, even promotions in lieu of truthfully delivering to their consumers what their products delivers. There are times some marketers allow the marketing of inferior products taking advantage of the single opportunity for a single sale. At times, we can refer to this as affordability or cheap. Most times, traders become manipulative and don’t really care for any sustainability other than the immediate profit at hand. This style of doing business does not require branding or any sustainability whatsoever. Most susceptible to this trade are street hawkers who take advantage of their consumers going on the cheap to attract them, without delivering any quality for their products. And because it is cheap, these hawkers can make the sale. This is not branding—it is called fooling!

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