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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