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By Jed Jaleco Del Rosario
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Monday, January 30, 2017
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ILOILO City – This week has been a very calm one for the Philippine stock market. Contrary to expectations that Trump’s inauguration will cause a selloff in both the US and the Philippines, equity markets in both countries have remained relatively calm.
“The market has been a boring one,” reported Technical Analyst Hernan Segovia, “There has been no action in the market in relation to President Trump’s inauguration.”
Segovia said investors have learned to look past both Trump and Duterte’s rhetoric, and focus on the economic data alone. He further explained that most of the fears behind Trump’s inauguration were based on unfounded rumors on social media, which explained why the Philippine market remains stable despite fears surrounding Trump’s presidency.
When asked if this stability will last throughout the rest of the year, Segovia answered in the affirmative.
“Foreign investors are quite bullish on the Philippines as well as local investors,” he said.
However, he also explained that the situation is not without any risks. The major downside now is if the Duterte administration cannot sustain the country’s GDP growth. Should this happen, it would reveal certain weaknesses in the Philippine economy.
“If the country does fail to meet the expectations of foreign Investor then it will mean that there are miscalculations,” he explained, adding that this will be known in the next few months./PN
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