DMN AUG 24 Philippine Hostage taking ends bloody for them and for PSE

3,530.49 DN 82     -2.29%
Value P4B

Dow Jones    10,174.41    -39.21    (-0.38%)
S&P 500    1,067.36    -4.33    (-0.40%)
Nasdaq    2,159.63    -20.13    (-0.92%)

I think I speak for every Finance Manila member when I say our hearts go out to the families and loved ones of the victims in yesterday’s hostage drama.

Here is my own personal opinion on the matter:
-people should not get too overly angered at the ineptitude of the Manila Police.  For one, they are poorly trained not of their own liking.  Government has no budget for that.  It’s not as if they all refused to train.  Secondly, it is human nature to want to blame someone for all of this, rather than accept that 8 people died on the whim of a madman, especially when this madman died and can no longer atone for his sins.
-one big booboo for me was the media showing sensitive footage like a)dragging the hostage taker’s brother screaming into the patrol car, which aggravated things, b)swat team assault on the bus was telegraphed directly into the bus TV!  Censorship is one thing, but one can always declare media blackout DURING THE TIME of crisis, and show the footage later.  I’m sure people will understand!
-nonetheless, what’s done has been done, and 8 lives have been wasted just like that.  I commend that sniper for ending things, but like everyone, wished it happened sooner.  The only other alternative I can think of was if the brother was not dragged away, the hostage taker Mendoza will have been too worn out to be too alert and eventually give himself up with the hostages, regardless if it took another 24 hours to do so.

This hostage taking exacerbated selling pressure on a market that has already gone up continuously for about 6 days.  Barring that last second ALI selldown, we were lower by 1%, roughly in line or just a little worse than our Asian neighbor’s drops on lingering American Economy weakness concerns.

So what really happened with ALI?  At 11:54 noon, ALI was trading at 16.08.  That was the last traded until the closing runoff which saw it immediately sink to 14, sold down by broker ATR.  ATR’s amount of ALI sold was about 1.4m shares.

Theories abound:
That’s an error, I think ATR was placing a buy and hit sell instead-
this is the least bit probable of the theories, as ATR was already selling in volumes during the day.  There was also no reason for him to place buy at 14 when it was doing 16, unless he was placing GTW buy at 14 for the next day?

ATR was really selling all those shares at 14- there’s no doubting this probability, but why sell everything 2 pesos below the closing price?  Makes no sense to burn 2 million pesos just like that.

My own theory: ATR was probably only selling 140k shares, and erroneously put in that extra zero because in the sucky new PAM trading system, there are no comma delimiters to separate the thousands, hundred thousands, millions place.  140000 looks like 1400000 does it not? Especially after a long day.

ALI aside, we were still down about 36 points.  ALI contributed 44 points with that 15% drop of his.  Other big index losers were MER AEV FLI ICT, which made up for 13 lost psei points.  The rest were distributed among URC, FPH, AGI, MEG etc.  The only index stock that gained was that weirdo LC, which was even a force closed minimum board lot buy up at the asking price.

At the end of the bloody day, there were still gainers.  CMT 1.42, RCM 6.35, ORE 2.56.

Total # of Trades       10,899
Advances     27
Declines     106
Unchanged     33

Comments

  1. Rodimus100 says:

    Maybe it was supposed to be ANI that was being sold at 14.

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