Politics

Philippine stocks drop after Marcos’ landslide win in presidential election

Philippine stocks dropped to a new nine-month low on May 10, the day after Ferdinand Marcos Jr., son of late dictator Ferdinand Marcos, won the presidential elections in a landslide to likely become the country’s 17th president.

The Philippine Stock Exchange Index tumbled 3.1 per cent at opening and during the day recovered to a minus of 0.58 per cent at 6,720.93, still its lowest close in nine months. Nineteen of the benchmark’s 30 components declined, with telecommunication, energy and property stock leading the sell-off, which was exacerbated by a global bearish sentiment during much of last week.

Almost $10 billion wiped out

The sell-off on May 10 erased as much as 488 billion pesos ($9.34 billion). Total market capitalisation of the bourse dropped by 168.27 billion pesos at close.

The former senator won almost 31 million or more than 60 per cent of the votes, while his closest rival, Vice President Leni Robredo, received 14.8 million votes as per a first tally in the evening of May 10.

However, analysts have voiced concerns about the economic programme of Marcos Jr. that should lead the country out of the Covid-19 pandemic’s setbacks, but has been perceived as nebulous at best

Equities are unlikely to rally until Marcos lays out a plan to spur growth, tame inflation and address the nation’s ballooning debt, Bloomberg News cited analysts.

Market stability sought

“Marcos has to form his economic team right away to provide local market stability,” the news agency cited Manny Cruz, a strategist at Makati, Metro Manila-based Papa Securities.

“Without an economic team and pronouncements on his economic agenda, it will be difficult to see a rally for investors who will be reacting mainly to global headwinds,” Cruz said.

In turn, the Philippine peso traded at 52.26 against the dollar in the afternoon on May 10, rebounding from a fresh three-year low seen last week after the US Federal Reserve raised interest rates by the most in more than two decades. Analysts attributed the currency’s recent weakness to the Philippines’ widening trade deficit and a stronger US dollar.

The currency still has to price in Marcos’ election win, the analysts said, noting that it is still in danger of extending this year’s decline as uncertainty over future macroeconomic policies of the upcoming new government adds to economic headwinds.



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Philippine stocks dropped to a new nine-month low on May 10, the day after Ferdinand Marcos Jr., son of late dictator Ferdinand Marcos, won the presidential elections in a landslide to likely become the country’s 17th president. The Philippine Stock Exchange Index tumbled 3.1 per cent at opening and during the day recovered to a minus of 0.58 per cent at 6,720.93, still its lowest close in nine months. Nineteen of the benchmark’s 30 components declined, with telecommunication, energy and property stock leading the sell-off, which was exacerbated by a global bearish sentiment during much of last week. Almost $10…

Philippine stocks dropped to a new nine-month low on May 10, the day after Ferdinand Marcos Jr., son of late dictator Ferdinand Marcos, won the presidential elections in a landslide to likely become the country’s 17th president.

The Philippine Stock Exchange Index tumbled 3.1 per cent at opening and during the day recovered to a minus of 0.58 per cent at 6,720.93, still its lowest close in nine months. Nineteen of the benchmark’s 30 components declined, with telecommunication, energy and property stock leading the sell-off, which was exacerbated by a global bearish sentiment during much of last week.

Almost $10 billion wiped out

The sell-off on May 10 erased as much as 488 billion pesos ($9.34 billion). Total market capitalisation of the bourse dropped by 168.27 billion pesos at close.

The former senator won almost 31 million or more than 60 per cent of the votes, while his closest rival, Vice President Leni Robredo, received 14.8 million votes as per a first tally in the evening of May 10.

However, analysts have voiced concerns about the economic programme of Marcos Jr. that should lead the country out of the Covid-19 pandemic’s setbacks, but has been perceived as nebulous at best

Equities are unlikely to rally until Marcos lays out a plan to spur growth, tame inflation and address the nation’s ballooning debt, Bloomberg News cited analysts.

Market stability sought

“Marcos has to form his economic team right away to provide local market stability,” the news agency cited Manny Cruz, a strategist at Makati, Metro Manila-based Papa Securities.

“Without an economic team and pronouncements on his economic agenda, it will be difficult to see a rally for investors who will be reacting mainly to global headwinds,” Cruz said.

In turn, the Philippine peso traded at 52.26 against the dollar in the afternoon on May 10, rebounding from a fresh three-year low seen last week after the US Federal Reserve raised interest rates by the most in more than two decades. Analysts attributed the currency’s recent weakness to the Philippines’ widening trade deficit and a stronger US dollar.

The currency still has to price in Marcos’ election win, the analysts said, noting that it is still in danger of extending this year’s decline as uncertainty over future macroeconomic policies of the upcoming new government adds to economic headwinds.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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