By Revin Mikhael D. Ochave, Journalist
MARKETS are anticipated to react positively to generally tranquil midterm elections on May 12, with Philippine President Ferdinand R. Marcos, Jr’s economic strategies seemingly poised for enhancement from allies in the new Congress, analysts mentioned.
“The Philippine Stock Exchange Index (PSEi) will strive to reach and surpass the formidable 6,500 barrier if elections are peaceful,” Cristina S. Ulang, research head at First Metro Investment Corp., stated in a Viber message.
“If nationwide tranquility prevails, the market will applaud the Philippine election’s transparency and resolution, marking a progressive step toward a new era in political governance and economic development,” she remarked. “A peaceful election will serve as a benchmark in Southeast Asia for the country’s effective democracy.”
Markets were inactive on Monday as Filipinos elected a new group of congressmen, 12 out of the 24-member Senate, and countless local officials during the midterm elections.
Commission on Elections Chairman George Erwin M. Garcia indicated there were no significant technical problems throughout the elections.
However, there was an attempt to hinder Filipinos from casting their votes in certain regions of Datu Odin Sinsuat, Maguindanao del Norte in southern Philippines, he noted.
The independent peace monitoring organization Climate Conflict Action reported that certain areas in the Bangsamoro Autonomous Region in Muslim Mindanao experienced violence and intimidation aimed at obstructing voter participation.
It further reported confrontations and scuffles at polling stations in Cotabato City, along with unauthorized blockades and road controls by partisan factions in Lanao del Sur, all within the Mindanao region. Additionally, there were convoy ambushes and armed conflicts in Basilan province.
Election watchdog National Citizens’ Movement for Free Elections also noted voting delays due to high voter turnout, which resulted from the absence of voter assistance desks and personnel.
On Friday, the primary Philippine Stock Exchange Index increased by 1.07% or 68.71 points to 6,458.2, while the wider all-share index rose by 0.6% or 22.5 points to 3,762.85.
The benchmark index improved by 0.72% or 46.34 points from the previous week.
The Commission on Elections previously stated that over 68 million Filipinos had registered to participate in voting for more than 18,000 national and local positions.
The elections were anticipated to be a focal point for the Marcoses and Dutertes, two of the most powerful political families in the nation.
“A largely peaceful electoral result will contribute to continued progress in the PSEi,” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., noted in a Viber message.
“A strong showing from the administration in the House of Representatives and Senate would lead to robust backing for the enactment of additional economic, fiscal, and other reform initiatives,” he added.
Jarrod Leighton M. Tin, an equity research analyst at DragonFi Securities, Inc., remarked that elevated election-related expenditures should now be evident in the latest financial disclosures of listed consumer firms.
“Consumer spending is most affected due to elections,” he stated in a Viber message. “This should be discernible in the first and second quarter financial results.”
“The market should have already accounted for that (spending) on consumer stocks,” he concluded.