The arrest of former President Rodrigo Duterte has yet to significantly impact the Philippine stock market, as investors remain more focused on external factors like US President Donald Trump’s tariff policies, the Federal Reserve, and the broader performance of US markets.
Eduardo Francisco, president of BDO Capital and Investment Corp., said that Duterte’s absence from the country has helped quell some potential unrest. “The fact that he left the country helps to pacify the situation. When he’s here, it would be more chaotic, with possible rallies,” he said at Filinvest Land Inc.’s bond listing at the Philippine Dealing and Exchange Corp. Francisco expressed hope that protest actions arising in the future remain peaceful and do not escalate.
Despite the political tension, the Philippine Stock Exchange index (PSEi) continued its downward trend, closing at 6,195.26 points on Wednesday, a slight drop of 11.29 points, though it previously dipped over 150 points.
Investors, according to Francisco, seek stability and peace, with growing concerns over the internal power struggle between the Marcos and Duterte factions. “We just want stability. The infighting between the Marcos and Duterte camps is negative for sentiment,” he said.
Antonino A. Nakpil, president and CEO of PDEX, noted the importance of unity in the country, acknowledging the political rift between the Duterte and Marcos families. However, he questioned whether such issues have a lasting impact on the market. “We can worry about it, but will that help? Probably not,” Nakpil said. “The problem in the Philippines is when we’re not united. But we have no choice but to move forward together.”
Juan Paolo Colet, managing director at China Bank Capital Corp., echoed these sentiments, saying the arrest has not materially affected the market. “Large investors aren’t particularly concerned about the issue. They remain focused on Trump, the Fed, and the US markets, as they continue to monitor how the situation in the Philippines evolves.”
Thus far, the market’s resilience in the face of political unrest reflects a preference for international developments over domestic political turbulence.
