Palace optimistic about PHL stock market rebound

MANILA – Malacañang has expressed optimism that the stock market will recover, noting investors’ confidence in the Philippines remains stable.

In a Palace press briefing, Presidential Communications Operations Office (PCOO) Secretary Herminio Coloma Jr. attributed the stock market entry into “bear” territory to developments affecting the local economy and other countries.

Coloma explained that Philippine relations with other countries as well as local-based companies’ transactions with those located overseas were also impacting on local businesses and investments.

He pointed out that many companies engaged in the local stock market had global or regional operations thus, their businesses were affected by developments in other economies.

“Kaya’t iyon naman ay kasama sa dynamics ng isang active na merkado at ‘yung tinatawag na “bear market” ay maaari din ‘yang magbago sa darating na panahon at maging “bull market” naman,” he said.

The Palace official also downplayed beliefs that the stock market slump relates to investors’ sentiment in the Philippine economy.

Coloma stressed that the Philippines continue gaining investment grade ratings from global credit rating agencies.

“Patuloy din ‘yung pag-ani natin ng papuri mula sa mga ibang bansa. Kahit saan pumunta ang Pangulo ay hitik ang kanyang schedule sa pakikipagpulong sa mga negosyante at industriyalista na gustong-gustong makipagnegosyo sa mga kumpanya sa Pilipinas dahil sa kanilang pagtitiwala sa kasiglahan at katatagan ng ating ekonomiya,” he added.

The local stock market has entered “bear” territory as the main index fell to 6,300-mark amid overseas and local concerns.

The main index recovered slightly 42.29 points to 6,330.55 on Tuesday from previous day’s 6,288.26 finish.

A bear market is defined as a period when share prices fall by 20 percent off the peak. As the PSEi peaked in April last year at 8,127.48, the bear market line stood at 6,500.