Just a reminder, based on government’s own Securities Exchange Commission SEC Code (section 24) mandate, "marking the close" supposedly represents an illegitimate activity ...
Apparently, because the establishment benefits from these, authorities seem to keep a blind eye on such incidences. Such is a manifestation of selective application of self-imposed regulations. When the establishment benefits, these rules become obsolete or irrelevant.
Nevertheless, it isn't my duty to ferret out on these irregularities.
However, I feel that it is my task to reveal to the public of the anomalies that not only exists, but has rampantly been practiced by some unidentified unscrupulous entities at the PSE.
Worst, such manipulations has contributed to the severe distortions on market prices of the Philippine equities. Having said so, falsification of market prices, which exacerbates on the mispricing of domestic securities, only reveals why the Philippine stock market has signified a huge bubble.
As explained yesterday, these actions has contributed vastly to the immensely skewed distribution of PERs in the PSEi index.
So while the average PER or the PSEi's PER has been at 18+ (as of April 21), that's because the lesser half of the PSE has LOW PERs (11.5). Issues from the latter half of the PSEi ranking have been least used in "marking the close" activities so partly explains their low PERs
However, the latter half's LOW PER essentially conceals on the marvelous 25+ PERs of the top 15 issues! And PERs at 25+ resembles that of 1996 levels!
And a major the reason why PERs of the top 15 composite members have been at nosebleed 25+ levels has been from the contributions by the above manipulative practices!
I would add that if one would calculate on the average weighted PER of the PSEi this would show a stunning PER of 23.62!
This only shows that none of these has been about G-R-O-W-T-H, but about an amalgam of implicit subsidies or transfer of wealth process, price fixing operations, propaganda and the transmogrification of the Philippine stocks into a loaded casino den.
And as I keep repeating here, there has been no country in this world that applies "marking the close" with such frequency, regularity and intensity!
Today marks another huge “marking the close” session courtesy of Team Viagra.
The PSEi was down .32% just a second prior to the market intervention phase. Then all of sudden, at the runoff period, the headline index was down by only .07%
So a stunning 78% of the session’s loss was wiped out because of “marking the close”!
The audaciousness of the rigging of the Philippine stock market can be seen in practically the four major sectors, led by the holding sector.
And the pump on the following issues has boosted the aforementioned indices
Note of unchanged prices of two issues (AEV and BPI--orange pre runoff prices) which suddenly zoomed at the close. This means that the entire or 100% gains of the day for the said issues had been a product of the end session pump!
As one would notice, the Phisix can’t stand on its own based on normal trading activities, so it has to depend on market manipulators to keep their artificial price levels up.
All images above from Bloomberg, PSE, technistock and colfinancial.
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