DMCI Holdings Inc. or DMC in the Philippine Stock Exchange was badly beaten today as its stocks plunged 11.70% to PHP41.50 after missing the MSCI Index addition. The stocks of International Container Terminals Inc. (ICT) on the other hand, went up 12.80% to PHP56.40 after its inclusion in the MSCI Philippine Index. Other stocks that made it on the list were Belle Corporation (BEL), Cebu Air Inc. (CEB), Global-Estate Resorts Inc. (GERI), Nickel Asia Corporation (NIKL), SM Development Corporation (SMDC) and Universal Robina Corporation (URC).
Chart-wise, DMC broke down from a 1-month double top formation along with the 2-month uptrend after the unfavorable MSCI list came out. Gauging the size of the double top and adding it to the breakdown point, our target price could be the PHP40.00 psychological level which also happens to be the neckline of the former cup and handle. Thus, this serves as a strong support. Buying pressure could be experienced at PHP40.00 but if this marker breaks, our next support could be the 1-year uptrend. On the upside, the immediate resistance is PHP44.00 then the next is the PHP48.55 all-time high. Today’s drop was really emotionally staggering but if you’d ask about my technical perspective on DMC. As long as the overall uptrend remains intact, I’d stay bullish on this.