No automatic tangible benefits from stock exchange rise, Palace admits

Malacañang on Saturday admitted ordinary Filipino consumers may not automatically feel tangible benefits – such as an increased purchasing power – from the all-time high recorded by the Philippine Stock Exchange index on Friday. Still, deputy presidential spokesperson Abigail Valte insisted the rise reflects the confidence of stock exchange investors, 60 percent of whom she said are local, in the Philippine market. “The way the market behaves is reflective na meron din siyang impact, hindi directly correlated with the spending power of what our workers earn. Ang ano rito, it’s an indication of what the climate is," she said on government-run dzRB radio. On Friday, the Philippine stock market closed at an all-time high at 5,016.30, with an interest rate cut by the Bangko Sentral ng Pilipinas cited as a major factor. But dzRB cited questions on why ordinary Filipino consumers have yet to feel the effects of the stock exchange rise through lower prices of basic goods. Valte also noted 60 percent of stock market investments come from local investors. “Because of the record highs in the Philippine Stock Exchange, nakita natin ang confidence, it’s an indicator of confidence of local businessmen in our administration," she said. — LBG, GMA News