The year 2015 has demonstrated that the gamut of wild pumping activities, which impelled the Phisix towards the April 10 2015’s 8,127 milestone, had been nothing more than destabilizing intensive speculative bids. Such frenzied bidding has been anchored on the popular delusion of G-R-O-W-T-H, which, as I rightly predicted, turned out to be a mammoth flop.
Of course, that was just a part of the story.
The other scintillating facet of 2015 has been the massive rigging of the local equity prices.Such rigging process originated at the 2H of 2014.
Apparently, both factors remain present today.
Perhaps in fear that the Phisix would break technical support, which may lead credence to the formation of the gigantic 4 year Head and Shoulder pattern, operation team Viagra ensured the headline index would remain within striking range of the May 2013 record threshold. The May 2013 high has palpably served as a mighty resistance level.
So with the use of another “marking the close”, today’s loss was trimmed by an incredible 42% at the closing second.
Three sectors participated in the concerted pump. The service sector contributed to the gist of the loss mitigation operations. The industrial and the property sector functioned as tactical flanking support for today’s loss alleviation program
Perhaps Operation Team Viagra may have read from this blog that in order to break 7,400 they would need a "broader or broad based" participation.
So indeed, a key part of today’s index management or price fixing program emerged from some of the underperformers.
By virtue of price fixing, service sector leaders, PLDT and GLO morphed from deep red to suddenly green.
In the case of PLDT, a huge loss of .98% magically closed up at .33%, from the massive +1.3% push. More so with GLO. Down by an enormous -1.3%, GLO was marvelously transformed at the close with a 1.38% advance, from another stunning 2.7% pump!
As of last Friday, based on market cap weight, TEL ranked fourth while GLO ranked 18th.
Energy producer EDC too was a beneficiary of a +1.6% pump that reduced the firm's loss to just .34% today.
Three of the four issues which benefited from today's pump were in the top 20 most active.
Price fixers seem to think that the discounting function of markets has been rendered irrelevant and obsolete by them. Or that they seem to believe that their actions have only beneficial consequences where the falsification of market prices would be a free lunch for them forever.
Well good luck to them.
Yes brazen equity price manipulation only in the Philippines!
Note: figures/images from colfinancial.com, Bloomberg, PSE and technistock.net
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