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Lower PSE open likely driven by global issues, not poll results: analyst

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Michelle Ong and Jessica Fenol, ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Philippine flags fly outside the Philippine Stock Exchange at Bonifacio Global City in Taguig on June 18, 2021. Jonathan Cellona, ABS-CBN News/File" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/business/11/23/20210618-philippine-stock-exchange-bgc-jc-4.jpg"/><figcaption>Philippine flags fly outside the Philippine Stock Exchange at Bonifacio Global City in Taguig on June 18, 2021. <em>Jonathan Cellona, ABS-CBN News/File</em></figcaption></figure></div><p>MANILA - Philippine shares opened lower on Tuesday, a day after the historic election that is poised to make Ferdinand “Bongbong” Marcos Jr the country&#x27;s 17th president. </p><p>The Philippine Stock Exchange Index (PSEi) opened at the 6,632 level, lower by 1.89 percent compared to Friday’s close. </p><p>It has since widened the losses and was trading at the 6,553.45 level, down by 206.45 points or 3.05 percent as of 10:11 a.m.</p><p>COL Financial Vice President and Head of Research April Lee Tan believes that the market performance is mainly driven by global performances and not necessarily the election results.</p><p>The US market is reacting to the recent interest rate hike by the US Federal Reserve to arrest record-high inflation.</p><p>US Fed chair Jerome Powell earlier announced a half-percentage-point-rate hike, the &quot;<a href="https://news.abs-cbn.com/business/05/05/22/us-fed-makes-biggest-rate-increase-since-2000-to-fight-inflation">biggest</a>&quot; since the year 2000.</p><p>“I think the performance of the market today is largely due to what’s happening globally…Those are more front and center although the market would have appreciated a victory by our VP Leni Robredo,” Tan told ANC.</p><p>Historically, a presidential candidate also does not “conclusively” lead to strong market performance, she added.</p><p>“I think it’s too soon to say that the market doesn’t really like a Marcos presidency. At this point, it’s too early to conclude,” Tan added.</p><p>It would also be unfair to judge a president based on his or her performance and its impact on the market when there are other issues that influence investors.</p><p>Under President Rodrigo Duterte, for example, the Philippines has and maintained investment-grade credit rating and economic growth improvements, she said.</p><p>His administration had also passed legislation that could attract more investors, she added.</p><p>&quot;So I don’t think it&#x27;s fair. There were a lot of other issues. There are a lot of factors that make the Philippines a lot less attractive compared to regional markets. There are a lot of factors, not just the president, which are the reasons why the market is where it’s at,&quot; Tan said. </p><p>During the COVID-19 pandemic, credit rating agencies kept their investment-grade ratings for the Philippines despite downgrades globally.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/02/18/22/lending-seen-to-support-growth-as-fitch-affirms-ph-rating">Lending growth to support recovery as Fitch affirms PH’s ‘BBB’ rating: BSP</a></li>	<li><a href="https://news.abs-cbn.com/business/07/16/20/moodys-affirms-philippines-baa2-rating-keeps-stable-outlook">Moody’s affirms Philippines’ Baa2 rating, keeps &#x27;stable&#x27; outlook</a></li></ul><p>Although the economy plunged 9.6 percent, its lowest since the end of World War 2 due to the COVID-19 pandemic, it was able to <a href="https://news.abs-cbn.com/business/01/27/22/ph-economy-grows-56-percent-in-2021-beats-forecasts">recover</a> to 5.6 percent in 2021.</p><p>Bangko Sentral ng Pilipinas Governor Benjamin Diokno earlier said the next administration would inherit a &quot;better economy&quot; compared to what the Duterte administration started with.</p><p>However, the next admin will also inherit higher debt, which hit P12.68 trillion as of the end of March, due to pandemic borrowings. The country&#x27;s debt-to-GDP ratio also ballooned to 60.5 percent in 2021 from 39 percent before the pandemic.</p><p>But this level of debt remains manageable as long the government is able to maintain robust economic growth, economic managers have said.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/05/05/22/ph-debt-hits-p1268-trillion-by-end-march-2022">Philippine debt hits P12.68 trillion as of end March 2022</a></li>	<li><a href="https://news.abs-cbn.com/business/05/02/22/next-administration-to-inherit-better-economy-higher-debt-diokno">Next administration to inherit &#x27;better economy&#x27;, higher debt: BSP Gov. Diokno</a></li></ul><div><em>Bookmark the <a href="https://halalanresults.abs-cbn.com">ABS-CBN News Halalan results page</a> to see the partial unofficial tally of election returns.</em></div><div><em>For other updates, visit ABS-CBN News&#x27; live blog <a href="https://news.abs-cbn.com/news/05/09/22/halalan-2022-abs-cbn-news-updates-on-philippine-elections">here</a>.</em></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2029995" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

Philippine shares opened lower on Tuesday, a day after the historic elections that is poised to make Ferdinand “Bongbong” Marcos Jr the country's 17th president. 

Lower PSE open likely driven by global issues, not poll results: analyst

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Lower PSE open likely driven by global issues, not poll results: analyst

Michelle Ong and Jessica Fenol,

ABS-CBN News

Published May 10, 2022 10:34 AM PHT

|

Updated May 10, 2022 11:28 AM PHT

Read More:

Halalan2022

PSEi

Philippine Stock Exchange

market

Philippine shares

election results

BBM

Bongbong Marcos

Marcos presidency

Ferdinand Marcos Jr.

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