The operations of Team Viagra have not only become regular but bolder and more intense.
For today session, virtually 74% of the day’s gains come from the session end spike
Which bourse in the world shows of the same phenomenon? Only in the Philippines! Only at the PSE.
In today's world, manipulations are now considered a virtue (even called reforms) hence the PSE was awarded as the best bourse of ASEAN in 2015.
Yet the brazen gaming of Philippine stock market reveals of increasing signs of desperation.
Why? Because fundamentals have been exposed as having little relevance to current stock market pricing or levels. The public in 2015 had been told that stocks was about G-R-O-W-T-H. So the April 10 2015 record--which eventually sputtered.
Now that 2015 is a fact and G-R-O-W-T-H was nowhere to be found, the stock market pumping has become even more furious.
So in the likely dread of the repetition of August 2015 and January 2016 crash, gains from current momentum has to be sustained AT ALL COST! And so the more drastic and desperate the end session pumps by manipulators!
Just look at the sectors which had been forcibly pushed higher.
Apparently the main thrust for the day’s operation has been banks. And they were followed by the regulars, the holding and property sectors.
Since it is obvious that a break of 7,400 won't happen with just 8 issues alone, manipulators had to generate a bandwagon effect from the other PSE issues
And since banks have largely lagged the recent meltup and so this likely "marking the close" pump. You see gains can't be achieved via regular market pricing, so manipulation is required.
A stunning more than 100% of BDO’s gains today was from the closing pump. As one would note, BDO was marginally down (in red) prior to the market intervention phase where the marking the close occurred.
BPI emerged from the grave to rise by 1.24% today. The last minute pump was 1.3%, which means, like BDO, more than 100% came from the coordinated push, since BPI was down prior to the intervention phase.
78% of MBT’s gains for the day was from the same maneuvering. 57.8% of ALI’s gains were from the same operations. So on and so forth.
The above are the major beneficiaries. Yet some others had pumps, but the scale has been lesser than as pointed above.
Given the intensity of the coordinated chicanery, it is even a surprise that the PSE closed up by only .78%. Today’s operations appeared as if it was engineered for 1% or more gains.
The lack of liquidity and the palpable tolerance by regulators and by the PSE has only been facilitating the commission of such irregularities. And since stocks are now status symbol, as well as policy tools which serve as a mechanism for the redistribution of wealth in favor of authorities and the establishment so why would they stop a good thing going?
But of course, there is no such thing as a free lunch forever.
Flagrant pumping with little support from fundamentals means imbalances will just keep mounting. And symptoms of imbalances, as consequence from the lack of respect and perversion of the markets, can be seen via vastly mispriced securities. And this means current conditions are unsustainable. And sorry to say, that such pumps would mean August 2015 and January 2016 crashes will most likely not be in isolation. The obverse side of every mania and manipulations is a crash.
Note images charts and data from PSE, Bloomberg, Colfinancial and technistock
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