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10 May 2022
Philippine stocks Fall; Erases as much as $9.3 Billion in the market after Marcos Election
The Index Today
Marcos, the son of the late Philippine dictator, has secured around 60% of votes, giving him a clear victory based on a partial and unofficial tally. But analysts say he lacks a clear economic strategy, causing jitters for the market making the Philippine stocks tumbled on Tuesday, according to the Nikkei Asia.
The benchmark Philippine Stock Exchange index opened nearly 2% lower, at 6,632.35, and fell by as much as 3% before paring losses.
Bloomberg also reported that Post-Marcos Stocks Slump Erases as Much as $9.3 Billion from Philippine Market.
William Matthew Cabangon, president of AAA Equities said, "The lack of clarity on Marcos Jr.'s policies is indeed a concern in the short term."
Cabangon also said the market's weak open was "broadly in-line with global stocks," which had their worst day since June 2020. Both the S&P 500 and MSCI Emerging Markets index are similarly down about 3%, Cabangon said.
"I think the market reaction shows that the Marcos Jr. victory was largely priced in and expected by investors," he said.
Marcos has been leading opinion polls by a huge margin since the start of the campaign early this year. With 96.65% of votes tallied, Marcos has 30.7 million. His closest opponent, Leni Robredo, the market's favorite, has 14.6 million votes.
Marcos is set to inherit an economy on course to recover from the pandemic but is being challenged by soaring inflation and mounting debt of the country.
"While many expect his administration to broadly continue the policies of the Duterte administration," Cabangon added, "markets will want a more concrete rundown now that the election period is over."