Investors await Duterte economic platform

ABS-CBN News

Share prices will trade within a tight range as investors await clarity on presumptive president Rodrigo Duterte’s plans for the economy, after a quick vote count fueled a two-day rally, analysts said Thursday.

The Philippine Stock Exchange Index was down 0.63 percent to 7,349.74 in early trading. It closed 3.09 percent higher to 7,396.52 on Tuesday, making it Asia’s best performer that day.

“The biggest risk is not understanding what the policy direction of the new government will be,” First Metro Asset Management President Gus Cosio told ANC’s “Market Edge with Cathy Yang.”

“We cannot exactly make investment decisions by drawing into a dart board. We have to know what the underlying goals that would affect the economy will be by the next government,” he said.

Duterte held a commanding lead in unofficial counting after Monday’s vote. Close rivals Sen. Grace Poe and administration bet Mar Roxas immediately conceded.

The 71-year-old maverick mayor, who campaigned on a promise to wipe out criminality, is eyeing a “major rewriting” of the constitution to shift to a federal-parliamentary form of government and look into a possible easing of restrictions on foreign ownership of business, according to his spokesman.

He is also considering hotelier and former agriculture secretary Carlos Dominguez as either finance of transportation secretary. The finance secretary is the traditional head of the cabinet economic team.

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