Stock market rallies on optimism over Duterte: PSE president

Joel Guinto, ABS-CBN News

Posted at Jul 28 2016 10:52 AM

MANILA - The stock market has rallied on optimism that President Rodrigo Duterte's decisive leadership style will help grow the economy, Philippine Stock Exchange President Hans Sicat said Thursday.

The Philippine Stock Exchange Index (PSEi) has risen 18 percent in the last twelve months, and in the last month since Duterte took office alone, the benchmark has risen 16 percent, Sicat told foreign correspondents.

"The expectation of the market is this is going to be a very transformational administration," Sicat said.

"There's a belief that the structural changes that have been promised will happen quite quickly," he added.

In his State of the Nation Address last Monday, Duterte promised, among others, to solve crippling traffic jams, lower income tax rates and cut red tape that has held back growth for decades.

READ: Duterte pushes lower tax rates, free WiFi

Sicat said businessmen were particularly pleased with Duterte's promise to honor government contracts.

"That's a very fundamental theme of how the business community operates," he said.