PSYEi: How 8,200 was Reached!

PSYEi: How 8,200 was Reached!

How to reach 8,000-8,200? Simple, this task is done by consistently executing a marking the close campaign.

The headline index closed the week up 88.64 points or 1.11%. Little is known that 117.78 points (or 132%) of this advance came from marking-the-closes.

Yes, the product of last week’s output came more than entirely from rigging the index.

Well, it is easy to do this. All it takes is a coordinated bid on the Sy Group of companies. 

 

Because the SY Group of companies has been the primary beneficiaries of the engineered pumping, they have been absorbing a significant share of the full market capitalization of the headline index.

The consequence has been to skew the market cap’ weightings towards disproportionately these issues, which now controls a record 31.16%. The first five companies now hold a record 43.6% share of the full market cap.

And this is just the full market capitalization. The index is calculated using the floating market cap, which the PSE has withheld publications to the public last February.  Their market cap share must have ballooned by even more.

 

Interestingly, not only has the board peso volume been decreasing as the headline index is being forced back up to the 9,000 levels, but the advance-decline spread has favored decliners from April 26 to November 8 (average 47 for decliners).

The concentrated pumping on these issues has also been taking volume away from the broader market, thus, leaving less upside participation for non-PSYEi issues.

As one can see, rampant manipulations have degraded or deformed the pricing system of the Philippine capital markets resulting in imbalances of mounting proportions!