From Marking the Close to Hype and Dump

Even more, there is not a single week where price fixing at the closing bell has been happening in rampancy. 

The least used version has been the pump and dump.

In one session last week, this became evident The PSEi has been puffed up the entire day and then, at the run off close, a sudden dump! That happened in June 2.

Curiously last May 31, when the PSEi closed .84% down, price fixers appeared to have lost control. Usually they coordinate their end of the market pumping. By coordination I mean generally push up key major issues.

But on Tuesday, price fixers went into different directions.

The most stunning portion was PLDT’s awesome pump and dump! PLDT was up 5% prior to the market intervention phase. At the runoff period, TEL just gave back more than 5% of its pre-closing gains to end the session down!

All it took was the market intervention period for pump and dump to happen! How prices can significantly change in an instant.

And notice of AEV’s stunning 4.1% price fixing or end of the session pump! That’s exactly how current record highs have been made of. AEV’s new record was a product of a marking the close PUMP!

The Bangko Sentral ng Pilipinas’ "Revised Rules and Regulations Implementing Republic Act No. 9160” (the Anti-Money Laundering Act of 2001 [AMLA], AS AMENDED BY REPUBLIC ACT NO. 9194 stipulates of the different price manipulations, which by SEC and BSP standards are considered illegitimate.

But all these have been occurring in a brazen fashion at the PSE. They set the rules, but are blind to such infractions. The Philippines IS the only country that openly practices this.

Stunningly media has long been silent about this. Interestingly incoming president Mr Duterte’s agitation against media lies on solid ground. The above should be an example. The exception has been that the means which Mr Duterte advocated to rectify such conflict of interests has implicitly been through violence: summary execution. Disregard of the due process shows that he doesn’t seem to be interested with reforms. Instead, what interests him is to control media. He wants everyone will sing halleluiahs to him! Such actions hardly lead to productive reforms. To the contrary, such actions lead to repression.

Yet such manipulations have been so egregious for even some lay people to have noticed this even without my informing them.

And as product of regulators, whom seem to have been asleep at the wheel, the ultimate consequence of such egregious manipulation has been to blow market activities out of proportion or drive them further away from reality.

At the end of the day, market forces will eventually rule: the obverse side of every mania (backed by manipulation) will be a bust.