Ramon Lopez, Secretary of the Department of Commerce and Industry (DTI), has expressed satisfaction with…
External factors continue to stifle the local stock market, according to economists.
MANILA – Volatility caused by external events continues to impair mood in local financial markets, according to one analyst.
In response to e-mailed questions from the Philippine News Agency (PNA), Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the decrease in the Philippine Stock Exchange index (PSEi) is less than that of, say, the US stock market.
The PSEi fell 38.97 points to 6,720.93 points a day after local and national polls on May 9. It fell another 1.27 percent, or 85.07 points, to 6,635.86 points on Wednesday.
“As a result, exogenous (or outside the country’s reasonable control) external risk variables continue to have a larger effect/impact on the local financial markets,” he stated.
These factors, according to Ricafort, include increased volatility in global financial markets as a result of more aggressive Fed rate hikes “that could lead to economic slowdown and some potential risk of recession,” the impact of Russia’s invasion of Ukraine since last February, which “led to higher prices of global oil/energy/other commodities that could add to elevated inflation,” and concerns about Chinese lockdowns “that could also slow down the global econo,” and concerns about the “lockdowns in China”
“As a matter of prudence, investors will be closely monitoring if the elections are clean, honest, credible, and peaceful, as an important first step/part of the democratic process,” he said of the Philippine election.
According to Ricafort, the Armed Forces of the Philippines (AFP) regarded the election on Monday to be mostly calm.
“The next stage would be to examine the new president’s/platforms/policies/reforms administration’s during the first 100 days, particularly the members of the Cabinet/economic team (some wait-and-see attitude, out of caution, while waiting for information in the coming days/weeks),” he added.
Credible/competent economic team, which has been observed over the past 10 to 20 years; implementation of policies that promote the environment, society, and governance (ESG) to help attract more investments; strengthening of institutions; rule of law; and more effective response against the impact of the impact of the impact of the impact of the impact of the impact of the impact of the impact of the impact of the impact of the impact of the impact of the impact of the impact of the impact of the impact of the impact of the impact of the impact of
He also mentioned the importance of focusing on economic recovery measures such as furthering the economy’s reopening, creating more jobs, improving the government’s fiscal position, increasing infrastructure spending, continuing economic and fiscal reforms, promoting greater inclusion/unity among politicians, and improving diplomatic relations with the country’s largest trading partners and foreign investment sources.