Hi everyone, that’s right! The title states it clearly! Before, I mentioned the stocks of JG Summit Holdings gaining 1,600% in less than 2 years from 1.58 pesos to an all-time high of 27.00 pesos (kindly see this link) and that was remarkable but what’s awesome are the stocks of DMCI Holdings, Inc. For those who do not know, this company operates four subsidiaries each one engaging in a different business such as general construction services, mining, investments and power generation. They are involved in both private and government projects. Anyway, DMC (its stock symbol in the Philippine Stock Exchange) was valued at 1.86 pesos back in October 28, 2008 and since then, it had gained 1,951% when it reached an all-time high of 36.30 pesos during the last trading session. However, it closed at 35.95 pesos which makes it a 1,932% increase to be exact. I remember posting about DMC when it was duck diving during the 2008 financial crisis (kindly check this link) but as we can see now, it had made a huge turnaround.
The stocks of DMCI Holdings, Inc. started its bull run on November of 2008 when some analysts said the bear market was about to reverse. From then on, the DMC stocks just kept on continuing to climb until now. However, in my technical analysis, the last daily candle formed on its stock chart could be bearish as it gapped up during the opening of the trading session and closed weak. In case the stocks drop, a significant support could be the 2-month uptrend. If that trend breaks and the stocks further decline, the next support could be 32.70 pesos. If the 32.70 peso marker still doesn’t hold on, the next support could be the 9-month uptrend. Personally, I think a minor correction would be healthy for the stocks before the ascend continues. However, if the bulls are too strong, the stocks will just keep on rising but could encounter some selling pressure at the 36.30 peso all-time high. If that price mark gets cleared out, the next level to be looked at is the 40 peso psychological resistance. Above all, as long as the uptrend remains intact, I’d stay bullish on this.