marking the close in pse
Trading Basics

3 PM Magic Sa PSE

Narinig mo na ba nagsabi ang guru mo na may “3PM magic daw minsan sa PSE”

I laugh when I hear or read such statements. That’s an ignorant statement. Let me educate you para ma remove ang ignorance.

When they say 3 PM magic they usually refer to MARKING THE CLOSE.

What is Marking the close?

A prohibited practice of closing up or down at an obviously small amount or board lots just before the closing of the market for purposes of manipulating stock prices.

Marking The Close is a technique of purchasing a security at the very end of the trading day often within minutes of the close of trading at a significantly higher price than the security’s current traded price. The purpose is to raise the security’s closing price, thus making it appear to be of higher value than it actually is. The manipulation of a transaction in order to give a false, misleading or artificial appearance of activity in a stock improperly influences the market price and is illegal. Yet, some traders continue to engage in such practice.

How does marking the close look like sa PSE? Let me show you with the help of a chart mula kay Wiseant.

If you look at time and sales sa araw na yun nasa 9.94 pesos lang ang price bago mag pre close. You can see that few brokers managed to push the price up. If you were looking at HOME noong pre close ma oobserve mo na MERIDIAN made a huge buy order na nagstart ng pag mark ng close.

Price Manipulation

To have a deeper understanding kung anu ano ang uri ng mga price manipulations you can read it here:

The day after mangyare ang “3 PM magic” usually bumabagsak ang price since hindi naman ito supported by significant buyers. They only pushed the stock price at near closing.

Click the links for the latest update that I remember kung ano ginagawa ng PSE/SEC about manipulative practices.

Link 1

Link 2

If you are into stock manipulation stories you can check this one out.

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