Tetangco: Market caution over martial law 'temporary'

Michelle Ong, ABS-CBN News

Posted at May 24 2017 02:45 PM

MANILA - Bangko Sentral ng Pilipinas Governor Amando Tetangco on Wednesday said the declaration of martial law in Mindanao could lead to temporary caution among investors, but sentiment would improve if the security goals are met.

President Rodrigo Duterte declared martial rule and cut short his official visit to Russia after Maute extremists raided the southern city of Marawi, leaving at least 3 security forces killed and 12 others wounded.

Tetangco said it was a "decisive move" for Duterte.

"The main objective is to improve security as well as peace and order situation which should lead to even greater confidence down the road," Tetangco told reporters.

"There will be some transitory or temporary cautiousness but in the end, it will be leading to positive impact on sentiment," he added.

Financial markets recovered slightly from early losses in late trading. The Philippine Stock Exchange Index was up 0.04 percent to 7,815.53.

The peso touched the P50 to the dollar level and averaged P49.954 in morning trading.