Phisix: Month End Afternoon Delight Pump Helped by BoJ

As I have been saying here, unlike the bullmarket of 2013, massaging of the index has become a frequent, if not a regular feature.

Just yesterday, the PSE had another low volume fantastic index massaging episode, highlighted by a combo—a selective pump on 6 major market cap issues PLUS marking the close. Add this to Monday's last minute pump.

Essentially current dynamics has been unfolding exactly as I described of the recent price management operations…

Nonetheless, the common trait in the massaging the index, either via intraday “pump” or “marking the close” have been to massively push up prices of at least 3 issues with combined market cap weighting of 15-20%. In panic buying episodes, (September 24 and October 16), the kernel of these activities transpire after lunch break.

The same modus has been at work today; an 'afternoon delight' ramp which culminated with a massive 'pump' at the last minute. 

Basically about 51% of the day’s .62% gains have been from the closing minute push.

In contrast to yesterday, today’s volume modestly improved to Php  9.7 billion from yesterday’s 7.6 billion. So I wouldn’t call today a low volume index massaging day. charts from technistock.net and colfinancial.com

Given the BoJ’s shock and awe which has so far spurred an astounding meltup in European and US stocks (futures), I expected the pump to happen and but was unimpressed by the close. 

As a side note, the Japan's Nikkei skyrocketed by a phenomenal 4.83% today to a seven year high. This has not only due to the BoJ’s steroids but likewise from the reported doubling of allocation for Japanese stock by the world’s largest pension fund, Japan’s Government Pension Investment Fund GPIF. So Japanese stocks will be pushed by both the BoJ AND GPIF.

Returning to the Phisix, the Afternoon delight was pretty much broadbased, which is understandable, because these last minute punters may have believed that the BoJ’s magic could spillover to the Phisix at the early trading sessions in the coming week. They could be right.

Today’s biggest sectoral gainers had been the industrials and services.

The biggest closing push came from industrials (middle) but had also been supported by the financials (left) and holdings (right)

Naturally the favorite the property sector (left) can’t be left behind while curiously the mining index (right) joined the frenzy.

As one would note, these stock market operators appear to have been methodically attempting to establish foothold on specific price levels (by 50-100s) regardless of valuations or instability risks. 

No warnings from political authorities will hinder these determined manic forces from what they perceive as the path to utopia.

Just a reminder…