By Revin Mikhael D. Ochave, Reporter
MARKETS are expected to cheer generally peaceful midterm elections on May 12, and with Philippine President Ferdinand R. Marcos, Jr’s economic policies likely to get a boost from allies in the new Congress, analysts said.
“The Philippine Stock Exchange Index (PSEi) will attempt to approach and break the tough 6,500 resistance if elections prove peaceful,” Cristina S. Ulang, head of research at First Metro Investment Corp., said in a Viber message.
“If peaceful nationwide, the market will cheer the Philippine election’s clarity and resolution, which is a step forward to a new future in terms of political governance and economic advancement,” she said. “If peaceful, this election will set an example in Southeast Asia of the country’s well-functioning democracy.”
Markets were closed on Monday as Filipinos picked a new set of congressmen, 12 of the 24-member Senate and thousands of local officials in midterm elections.
Commission on Elections Chairman George Erwin M. Garcia said there were no major technical issues during the elections.
But there was an attempt to prevent Filipinos from voting in some areas in Datu Odin Sinsuat, Maguindanao del Norte in southern Philippines, he pointed out.
Independent peace monitoring group Climate Conflict Action said there were some areas in the Bangsamoro Autonomous Region in Muslim Mindanao that reported violence and intimidation to prevent people from voting.
It also reported shootouts and brawls at election precincts in Cotabato City, as well as illegal blockades and road control by partisan groups in Lanao del Sur, all in the Mindanao region. There were also convoy ambushes and armed clashes in Basilan province.
Election watchdog National Citizens’ Movement for Free Elections likewise reported voting delays amid high voter turnout due to the lack of voter assistance desks and personnel.
On Friday, the main Philippine Stock Exchange Index rose 1.07% or 68.71 points to 6,458.2, while the broader all-share index added 0.6% or 22.5 points to 3,762.85.
The benchmark index gained 0.72% or 46.34 points from a week earlier.
The Commission on Elections earlier said more than 68 million Filipinos had registered to vote for more than 18,000 national and local positions.
The elections were expected to be battleground for the Marcoses and Dutertes, two of the most influential political dynasties in the country.
“A generally peaceful election outcome will help continue the gains in the PSEi,” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.
“The administration garnering strong numbers at the House of Representatives and Senate would result in strong support for legislating more economic, fiscal and other reform measures,” he added.
Jarrod Leighton M. Tin, an equity research analyst at DragonFi Securities, Inc., said increased election-related spending should now be reflected in the latest financial reports of listed consumer companies.
“What is most impacted is consumer spending because of elections,” he said in a Viber message. “This should be reflected in the first quarter and second quarter financial results.”
“The market should have priced that (spending) already on consumer names,” he added.
