Monday, January 25, 2016

Awesome 'Marking the Close' Pump sends Phisix up 3.64% on Low Volume!

So my hunch was right, I noted last night that severely oversold conditions plus central bank magic would mean that this should be a big week for the bulls. 

Well, this post isn't about the above. Rather this post has been about documenting the brazen price fixing activities at the PSEi



The charts from colfinancial, technistock and Bloomberg above shows two things: One, today's massive 3.64% jump came with hardly an improvement in peso volume even when the rate of gains accelerated from last Friday's 2.03%. Today's volume (see below) at Php 6.676 billion was only 8.25% better than last Friday's (January 22) peso volume of Php 6.167 billion. Yes massive price gains backed by puny volume, a familiar trait of a sucker's rally.

The second, and more important, that the market intervention (or pre closing) price of the PSEi was at 6,365, and in an instant or suddenly, or at the official close, the PSEi was at 6,434.08 or up 3.64%! This means that 69.08 points of the 226.03 points or 30.56% of the days gains came from a massive synchronized 'marking the close'. The charts above looks like the PSEi took a viagra!

Due to insufficient volume, manipulators can only depend on fixing closing bids higher during the market intervention window. That's because these manipulators can't seem to spike the prices during the normal operating session. 

And it's obvious that the biggest beneficiaries of the oversold pump have been the year's biggest losers, particularly the Property sector and the Holding sector. Nonetheless, all key major sectors were recipients of the end of the session pump!


And gains had been concentrated on the market biggest caps (or within the top 10), while the rest or the PSEi minors underperformed. It's clear that today's actions had been orchestrated to embellish the index.

And here are the biggest beneficiaries from today's price fixing pump…


64.16% of SMPH's end of the day advance of 5.1% came from a massive 3.27% last minute pump!

56.87% of parent SM's end of the day advance of 5.68% emerged from a massive 3.23% last minute pump!

And all these market distortions from gaming of the system have been part of the reason why bear markets exists! 

When people don't respect the markets, markets come back to haunt them.


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