Philippine stocks fell to a fresh nine-month low on May 10, a day after Ferdinand Marcos Jr., son of the late dictator Ferdinand Marcos, won a landslide presidential election that could make him the country’s 17thth president.
The Philippine Stock Exchange index opened down 3.1 percent, retreating to minus 0.58 percent on the day at 6,720.93, still its lowest close in nine months. Nineteen of the benchmark’s 30 components fell, led by telecommunications, energy and real estate stocks, which was exacerbated by global bearish sentiment for much of last week.
Nearly $10 billion wiped
The sell-off on May 10 wiped out as much as 488 billion pesos ($9.34 billion). The total market capitalization of the exchange closed down 168.27 billion pesos.
The former senator won nearly 31 million or more than 60 percent of the vote, while his closest rival, Vice President Leni Robredo, won the first count on the evening of May 10. 14.8 million votes.
Analysts, however, have expressed concern over Marcos’ economic plan, which should lead the country out of the setbacks of the Covid-19 pandemic, but is seen as vague at best
Stocks are unlikely to rise until Marcos lays out a plan to stimulate growth, curb inflation and address the country’s ballooning debt, Bloomberg News Cite an analyst.
Seek market stability
“Marcos must assemble his economic team immediately to ensure stability in the local market,” the news agency quoted Manny Cruz, a strategist at Makati-based Papa Securities in Metro Manila, as saying.
“Without the statements on the economic team and his economic agenda, it will be difficult to see a rebound from investors who are primarily reacting to global headwinds,” Cruz said.
In turn, the Philippine peso traded at 52.26 against the U.S. dollar on the afternoon of May 10, rebounding from a fresh three-year low last week after the Federal Reserve raised interest rates more than 20 years ago. Analysts attributed the currency’s recent weakness to the Philippines’ widening trade deficit and a stronger dollar.
Analysts said the currency still had to price in a Marcos election victory, noting that the currency remained in danger of extending this year’s losses as uncertainty over the future macroeconomic policies of the incoming new administration exacerbated economic headwinds.
Philippine stocks fell to a new nine-month low on May 10, a day after Ferdinand Marcos Jr., the son of late dictator Ferdinand Marcos Jr. Advantage wins the presidential election and is likely to become the country’s 17th president. The Philippine Stock Exchange index opened down 3.1 percent, retreating to minus 0.58 percent on the day at 6,720.93, still its lowest close in nine months. Nineteen of the benchmark’s 30 components fell, led by telecommunications, energy and real estate stocks, which was exacerbated by global bearish sentiment for much of last week. Almost $10…
Philippine stocks fell to a fresh nine-month low on May 10, a day after Ferdinand Marcos Jr., son of the late dictator Ferdinand Marcos, won a landslide presidential election that could make him the country’s 17thth president.
The Philippine Stock Exchange index opened down 3.1 percent, retreating to minus 0.58 percent on the day at 6,720.93, still its lowest close in nine months. Nineteen of the benchmark’s 30 components fell, led by telecommunications, energy and real estate stocks, which was exacerbated by global bearish sentiment for much of last week.
Nearly $10 billion wiped
The sell-off on May 10 wiped out as much as 488 billion pesos ($9.34 billion). The total market capitalization of the exchange closed down 168.27 billion pesos.
The former senator won nearly 31 million or more than 60 percent of the vote, while his closest rival, Vice President Leni Robredo, won the first count on the evening of May 10. 14.8 million votes.
Analysts, however, have expressed concern over Marcos’ economic plan, which should lead the country out of the setbacks of the Covid-19 pandemic, but is seen as vague at best
Stocks are unlikely to rise until Marcos lays out a plan to stimulate growth, curb inflation and address the country’s ballooning debt, Bloomberg News Cite an analyst.
Seek market stability
“Marcos must assemble his economic team immediately to ensure stability in the local market,” the news agency quoted Manny Cruz, a strategist at Makati-based Papa Securities in Metro Manila, as saying.
“Without the statements on the economic team and his economic agenda, it will be difficult to see a rebound from investors who are primarily reacting to global headwinds,” Cruz said.
In turn, the Philippine peso traded at 52.26 against the U.S. dollar on the afternoon of May 10, rebounding from a fresh three-year low last week after the Federal Reserve raised interest rates more than 20 years ago. Analysts attributed the currency’s recent weakness to the Philippines’ widening trade deficit and a stronger dollar.
Analysts said the currency still had to price in a Marcos election victory, noting that the currency remained in danger of extending this year’s losses as uncertainty over the future macroeconomic policies of the incoming new administration exacerbated economic headwinds.
