Stock market brushes off 'political noise' amid Duterte arrest

Share prices on the Philippine Stock Exchange (PSE) closed in the red on Wednesday, albeit at a relatively low rate, still due to global uncertainty arising from US President Donald Trump’s anticipated protectionist policies.

Local stock market barometer, PSE index, closed at 6,195.26, shedding 11.29 points or 0.18%.

The broader All Shares, meanwhile, finished lower by 2.79 points or 0.08% to 3,681.80.

Sought for comment if Wednesday’s stock market movement was influenced by yesterday’s arrest of former President Rodrigo Duterte over alleged crimes against humanity before the International Criminal Court in relation to his administration’s bloody war on drugs, analysts brushed aside the ongoing political noise.

“For now, we don’t see former president Rodrigo Duterte’s arrest having an impact on the market since it has no significant effects seen on the economy and its outlook,” PhilStocks Financial research manager Japhet Tantiangco said.

“[F]or now, the market’s move is attributed mainly to worries offshore due to the US’ protectionist trade policies,” Tantiangco said.

Rizal Commercial Banking Corp. chief economist Michael Ricafort, likewise, said that local stock market’s movement was “largely [due to] external factors, especially US stock markets at new six-month lows recently amid uncertainties related to Trump’s tariff threats.”

Ricafort said that the “relatively orderly process” of Duterte’s arrest “could send positive signals on respect for the law, authorities, and institutions locally and internationally.”

Tantiangco, for his part, said that market issues could arise if there will be prolonged and escalated political turmoil.

“There could be risk of political noises locally, but still wait-and-see in the coming days/weeks, though that could remain as noise for as long as there are no large protest rallies and no other forms of destabilization,” Ricafort said. — RSJ, GMA Integrated News