We have been closely watching developments in the political scene in the aftermath of the recent mid-term elections. We’ve witnessed, on one hand, the mud slinging, the acrimonious fight for public seats, the ugly tirades, the mutilation and the resultant disfigurement, wounds and the scars.
Some are basking in their triumph, the ecstasy of the victors. Others are doing a post-analysis on what happened… where did they go wrong?
Philippine Stock Exchange (PSE) Chairman Jose “Titoy” Pardo has good words on the conduct of the Monday’s political exercise. “Despite kinks, the election was credible and showed democracy alive and functioning.”
Enthralled by its swiftness, Mr. Titoy is all praises for going digital. “I am a convert. The digital era is beginning to take root in the country. I was fortunate that in the precinct where I voted, the ‘computer’ functioned seamlessly. I was done in less than 10 minutes.”
As we go back to our regular programming, I’ve rounded up business analysts and market players on how the result of the recent electoral process would shape the business climate in the country.
Jonas Ravelas of BDO Universal Bank best summarized it: “The election result should have positive effect for the market. It gives the President more room to speed up further reforms.” As an aside, I salute BDO Chairperson Teresita “Tessie” Coson-Sy and Mr. Jonas. BDO bested all other financial institutions and Mr. Jonas bagged this year’s Analyst Forecast Awards.
Fine, the election outcome mirrors the continued support to the leadership of the President. It’s time for the victors, these new civil servants, to buckle down to work. For us, the electorate, we must not slacken in monitoring the campaign promises. Simply put, we must remain vigilant. A follow-thru of the promises made during the campaign is necessary.
Market updates: Anxiety and concerns are mounting over the collateral effect of the escalating tariff impasse between two giants – US and China. The trade war is “casting a long shadow” on the growth potential of our country and other economies’ intra-regional trade. The performance of Philippine exports may take a hit since the country send middle goods for finished products.
Though, it’s a wild card, it’s also an opportunity for the Philippines to shine, especially with the levelling up of the country’s creditworthiness. “There’s more attention on us,” says Ms. Tessie while Mr. Titoy observes that money invested in the bourse, which left early this year, is flowing back in.
And finally after a few weeks of delay due to documentation requirement compliance, the government Wednesday successfully floated its second Panda bonds worth 2.5 billion Renminbi with three-year tenor at a rate of 3.58 percent, 35 basis points lower compared to its maiden issue last year.
Investors swarmed the float, 4.5 times oversubscribed, a manifestation that the recent credit update makes borrowing relatively cheaper.
That’s how the wheels of politics and business churn.
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