The Philippine stock market is still expected to go higher before the end of 2016. —ELOISA LOPEZ
It was a “roller coaster” ride for investors in the third quarter, as a shift in the country’s leadership coincided with a slew of other domestic and global developments.
The benchmark Philippine Stock Exchange Index (PSEi) slid about 2 percent in the last three months, or since President Duterte assumed power in July. Despite that decline, the PSEi was still up almost a tenth since the beginning of 2016.
Analysts polled by the Inquirer gave mixed views on what moved—or didn’t move—the market during the third quarter.
Some cited the President’s irresponsible off-the-cuff remarks as increasing volatility, while others noted that investors managed to look past controversial rhetoric and focused instead on high valuations, the so-called ghost month, and uncertainties over an interest rate hike by the powerful United States Federal Reserve.
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More importantly, the Philippines still offered some investment opportunities. The PSEi was still seen to go higher before the end of 2016, or at least stay above last year’s close, despite risks that were highlighted.
“There are some concerns such as the possible change in international policy, but still, overall we are bullish on the Philippines moving forward,” Manuel P. Cruz, strategist at Asiasec Equities, said in an e-mail.
