Last weekend, I compared the Phisix with the NYSE listed EPHE. That was an apple to orange comparison. Now the apple to apple version: Phisix divided by the USD peso…
…well, despite the differences in the composition of the index and the NYSE-listed ETF, the Sy-led Phisix reveals almost exactly the phenomenon: diminishing returns (lower highs) largely from a weak peso and from forced upsides.
And the astonishing vertical price phenomenon seen in the previous three episodes extends to its fourth rendition today. All three accounts, 2013, 2015 and 2016 shared the same bearish ‘rising wedge’ strain. The same pathology appears to plague the current version.
And please do note that in the past three runups to record (and near milestone) highs, foreign money played a crucial role (lower window green rectangles).
Including the BSP’s foreign portfolio report for May published today, the current onrush to 8,000 has largely been local driven.
I wonder what had happened to the SM-2GO transaction which was presented in the PSE as ‘foreign trade’ in April? [The Third Breakout Of 7,400: The Risk Of Complacency And Self-Delusion April 10, 2017]
It has also been a curiosity to see the BSP publish a net outflow of US $24.35 million in May when PSE’s data shows an inflow Php 8.624 billion (USD 173 million at BSP’s average peso for May at 49.8603). Why a galaxy apart in the BSP and the PSE’s numbers?
And why shouldn’t the past mini boom-bust phase be the same with the present? Haven’t the PSEi been subjected to similar serial vehement tortures from pseudo or even non-market forces?
The quest to break 8,000 has reemerged with a truly awesome dump-pump and pump-dump fest during the last 3 days!
Yes…Only in the Philippines!
And this is what makes for the best stock market in Asia…a severely deformed pricing system!
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