Even in the Philippines, stock market crashes have become real time.
Last weekend I asked: Has this week’s domestic casino stock market crash opened the Pandora’s Box of debt deflation?
Equity markets seem as suggesting so.
The Phisix closed the day bloodied.
Losses had been broadbased; losers trounced gainers 162-24 or by a ratio of 6.7 to 1
The market carnage was spearheaded again by casino stocks. Bloomberry Resorts plummeted 8.32% along with peers Resorts World developer Travellers International which plunged 3.74%, Melco Pacific crashed 4.92% and Melco partner Premium Leisure dived 4.83%.
Again foreigners dumped domestic casino stocks in panic.
Incredibly this casino hemorrhage has spilled over to the broader markets, even shopping mall giant SM Prime holdings bled by 4.26%.
All sectors closed with significant losses.
At one point the Phisix was down by 2%, but again stock market operators did their work, the afternoon delight was again partially implemented. And this culminated with a quasi marking the close (chart from technistock.net)
Three sectors (holding, industrial and financed left to right; chart from colfinancial) had been pushed during the last minute but sellers on the other sectors partly offset this by pulling down the others (service and property).
Despite the grand scheme to manage the index, the Phisix now seems farther away from the record 7,400. Ironically the risk appears to be a breakdown of the 7,000 level.
It’s not just the Phisix though; ASEAN stocks have been under pressure. Malaysian stocks which I wrote about last week, Thailand and even Vietnam’s stock markets have closed significantly lower today (table from Bloomberg)
As I have been warning here, the strong US dollar (weak regional currencies) is a sign of tightening, thereby an obstacle to risk assets.
That’s the charts of the near identical twins Thailand’s SET and the Philippine Phisix as of yesterday. (chart from Stockcharts.com) Even today's actions seems to rhyme.
Oh as of this writing, stock markets of major Arab oil producers appear en route to close the day similar to how domestic casino developers-operators performed—with another crash!
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