The
PSE eulogized:
The
Philippine Stock Exchange index (PSEi) posted a new record high on
Thursday.
The PSEi closed at 8,144.91, up by 91.03 points or 1.13 percent from Wednesday's close. Today's closing level is the highest for the main index since April 10, 2015, when the PSEi closed at 8,127.48. Intraday, the PSEi also hit a fresh all-time intraday high of 8,169.64 surpassing the previous intraday record of 8,136.97 posted on April 7, 2015.
"The stock market's surge to a record high underpins investor confidence in the local economy and in the Philippine capital markets. The Philippines remains a favorite among emerging markets as it continues to provide attractive returns," said PSE President and CEO Ramon S. Monzon.
Year to date, the PSEi has gained 19.1 percent.
First,
Asia has been experiencing a frantic race for yields. Bourses of
Vietnam,
Indonesia,
South
Korea, New
Zealand, Bangladesh
and India
have sprinted to RECORD highs! Thailand’s
SET and Taiwan’s
Taiex has rocketed to 1995 and 1989 highs respectively! Bourses
of Hong
Kong, Australia,
Malaysia,
Singapore
and Pakistan
drifts at close to recent zeniths. The Mongolian
top 20 index seems to catch up rapidly. There have only been TWO
exceptions: Laos
and Sri Lanka.
Like
the PSEi, the
MSCI Asia Index (ex-Japan) has topped its 2006/7 high
By
the PSE’s logic, with the exception of the two outliers, every
single bourse in Asia has been experiencing “investor confidence in
the local economy and in the capital markets”. Also Asian bourses
“continues to provide attractive returns” regardless of
valuations.
Chasing
prices from negative real rates create the aura of attractive
returns. Stock markets have become gambling halls.
Next,
FIVE issues contributed to nearly THREE-FOURTHs of today’s market
weighted index gains. The average gain of the Phisix was only .89%.
Moreover,
based on 2016 eps, the average PER for the PSEi rose 20.785. However,
when calculated by the free float weighted market cap, PER vaulted to
25.52! That would be 1996 highs!
Please
do notice that the highest PERs have been crammed in the top 15. The
slope of PERs reveals where the concentration of pumping has taken
place during the past 4 years (lower window)
Remember,
the PSEi 30 1H 2017’s net income grew by less than 1%! What has
zoomed in the 1H in the PSEi 30 was debt! Additionally, 1H
GDP was only 6.4%!
The
PSEi made a breakthrough on decaying foundations!
Market
internals also shows the same symptoms.
Today’s
breakout emerged with a stunningly low peso volume of only Php 8.45
billion!
When
the PSEi broke the 7,400 in January 9, 2015 peso volume was Php 11.2
billion!
The
past two 8,100 runs in 2015 and 2016 have eclipsed today’s slim
volume by a wide margin!
Volume
for the six issues accounted for 30.43% of total trades at the main
board today.
The
low volume, rocketing prices everywhere and negative real rates have
allowed manipulators to push back sellers.
This
only shows how 8,144.91 have hardly been from real market forces but
from systematic engineered pumping – from the afternoon delight and
marking the close.
While
it may be mission accomplished for them, what comes down the pike
should be very interesting.
