It’s definitely more fun at the Philippine Stock Exchange!
Two days of intense intraday volatility, how couldn’t this be fun?!
November 7 or Monday’s session begun with a “dump”. The PSEi dropped to as much as .86% in the morning session but recovered only a part of this by lunch recess.
Like clockwork, afternoon delight came to action immediately post lunch. The index had been “pumped” to ERASE all the intraday losses when it entered the market intervention phase. When the runoff period appeared, the PSEi was down by .42%! Or 100% of the day’s loss was via marking the close!
As a reminder, activities of the top 15 biggest market cap issues largely determine the daily outcome of the PSEi. The top 15 issues, carries a market weight of 80.29% (as of November 4). Even more, the top 5 issues accounted for 38.06% share of the PSEi’s market cap or 47.4% of the top 15’s weighting.
As one would note, 3 of the top 5 (SM, ALI, and SMPH), and 3 from the fifth to the twelfth ranked (BPI, URC and JFC) ultimately set the closing price for the day!
Just exactly what has prompted a change of mind by index managers to dump them at the transition towards the runoff? A break in the ranks of manipulators?
For the day, the PSEi gyrated by 2.14%!
Yet yesterday would seem like an appetizer for the main course today.
FBI’s exoneration of a key candidate from the US presidential elections being held today led to a massive stock market risk ON. The elation percolated to the PSE.
The Phisix opened the session significantly up by almost 1.5%!
Then by mid-morning, the PSEi was dumped. Gains were slashed by 1% or to just .5%. A swift pump pushed the PSEi up to .62% by lunch break.
Again like clockwork, the PSEi had serially been pumped post lunch. The afternoon delight went into operation anew.
Not content with the 1.14% pre-market intervention gains, index managers pumped an immense .4% to pad daily gains to 1.54%!
Or 26% of the 1.54% advance was via marking the close
All in all, the PSEi fluctuated by a stunning 3.5%!!!
Tremendous volatility!
Issues mainly from finance, industrials and holding sectors largely belonging to the 5-15 largest market cap were responsible for the marking the close pump. The biggest movers URC’s 2.21% accounted for 32% of the day’s 6.87% advance. AEV’s 1.3% closing pump constituted 51% of the issue’s 2.53% gains.
Again, what can’t be produced at the regular intraday period had to price fixed at the close.
This shows how the Philippine stock market has been transformed into a loaded casino.
Prices only matter. To be sure, these activities have barely been about profits but about SYMBOLISMs. Symbolism anchored on the premise that high prices equal PROSPERITY from G-R-O-W-T-H!
All these pricing fixing and manipulations happening brazenly and frequently—only in the Philippines!
Yet all actions have consequences. Immediate gratification will come with untoward ramifications.
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