Phisix 6,850: Team Viagra Strikes Again!

Only in the Philippines has it been where the stock market indices have been subjected to frequent injections of (marking the close) Viagra.

Only in the Philippines has been where the establishment harbors on the illusion of attaining of a first world country status but yet has to depend on price fixers to prop the stock market index

Also only in the Philippines has been where the establishment feverishly try to paint them as ‘moral’ and 'legal' but seem to find themselves blindsided when it comes to the gaming/massaging/manipulation of the stock markets.

28.42% of today’s PSEi's gains came from last minute ingestion of Viagra!

While the last minute price fixing was likewise seen in the holding and the industrial sector, it was the pump at the property sector that delivered the meat of the last minute pump!

About 53% of the Property Index gains accrued from price fixers!

Three PSEi and property index issues benefited from the closing Viagra pump.

Prices provide informational content on the economics of the stock markets. Specifically, prices are supposed to represent the fundamentals (discounted stream of future cash flows) of securities traded at the exchange.

Manipulation of prices, thereby, translates to the distortions in the communication of such vital information which leads to misinformation.

And considering that price fixing has been a regular phenomenon here, then the massive deformation of price signals postulates not only to the gross mispricing of securities and the stock markets in general, but also reflects on the immense imbalances that have been accumulated by firms that have been misled by easy policies to engage in massive capital consumption activities.

The latest financial tremors have already been indications that economic reality will reassert control. And price fixing will only exacerbate on the return of liquidation phase.

Apparently, British author Aldous Huxley’s warnings has always reverberated: That men do not learn very much from the lessons of history is the most important of all the lessons that history has to teach.

(charts/graphs above from Bloomberg, colfinancial and technistock)