Only in the Philippines!
Yes, that’s yesterday’s trading session.
Like in the latest previous pumps, the Phisix had a panic buying episode at the opening (left red rectangle). The domestic benchmark stormed to about a high of 2.1% in gains during the early part of the morning session. As the morning session matured, the headline index pared back some of these to trade about 1.9% to 2% going to lunch break.
Post lunch, instead of an afternoon delight, the PSEi lost more ground. But yes there was an attempt to pump it back (orange box).
The PSEi closed the regular trading window with 1.72% advance only to see a stunning .49% decline during the runoff until the closing bell to record only a 1.23% return for the day.
PUMP became a last minute DUMP!
Except for MEG and GLO, the index had been driven down through coordinated dumps in 5 issues from the top 12 biggest market cap
It could be that one big fund may have decided to drop their holdings simultaneously in these issues. Or it could be that some people may have decided that gains for the day were too much.
By the way, mark the close dumps are rare. It happens in perhaps one out of 20 (or even more) accounts of marking the close PUMPS!
And today’s price fixing actions.
For some reason, Technistock.com, the charts which I frequently use, have been not updated for today’s actions.
So I used Bloomberg’s and PSE’s intraday chart to exhibit—what makes the Philippine stock market an extraordinary place
As yesterday, the PSEi started strong where it raced to about .35% in gains at the opening. Unfortunately, it weakened fast. It gave back all gains to go negative .4%. The PSEi then recovered by about half of the losses to close for lunch recess.
Post lunch break, the PSEi dropped back to the morning lows. But as always, repeated afternoon delight pumps had been tried. Finally, past 230 pm, the selling momentum’s back had been broken—the headline index ascended sharply.
However, the recovery had not been enough. That’s because the close of the regular session had the PSEi down by .07%. When the runoff period emerged, the PSEi jumped to a gain of .32!
In short, dump morphed into a fantastic pump! Water turned into wine!
All of the day’s gains and MORE was via a massive coordinated pump!
Again we see similar issues that had previously been dumped, spiked to deliver the gist of the gains by the Phisix for the day.
Such amazing price fixing dynamic, which happens with startling regularity and staggering intensity, should be the prime trait that makes the Philippine stock market entirely unique—in Asia or even perhaps the world.
The better characteristic for the domestic equities should be a price fixing equity platform rather than as a stock market—where the latter invokes price discovery.
This goes to show how stocks have become politicized where higher prices are seen as an entitlement, hence the relentless and brazen price fixing process. Yet the more distortions of the marketplace, the more they are subject to reversion to the mean or to a disorderly market clearing process.
But who cares? After all, in the world of political correctness, high prices serve as a license for more redistribution or easy access to resources, high wealth profiles (Forbes Wealthiest) and status symbol for the political leadership.
Happy weekend!
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