Focus on companies, analyst says as election jitters grip market
Long-term investors in the stock market should not get distracted by political uncertainty ahead of the May 9 elections and focus instead on company earnings, an analyst said Tuesday.
The Philippine Stock Exchange Index bounced back on Tuesday, up 0.53 percent to 7,091.07 in early trade after touching a seven-week low on Monday on worries that presidential frontrunner Rodrigo Duterte had not detailed his economic platform.
"Investors should focus their eye on the ball. For us, political uncertainty is inherent in the market. Focus on the companies," First Resources Management and Securities research head June Maunes told ANC’s “Market Edge with Cathy Yang.”
"Most of the companies would report higher than expected earnings. We expect consumer companies to beat our estimates because of this election spending," he said.
The tough-talking Davao City mayor has kept an 11-point lead over closest rival, Sen. Grace Poe according to the April 19 to 24 survey by ABS-CBN and Pulse Asia.
Duterte met with the country's business elite last week, but instead of detailing how he planned to grow the economy, the frontrunner vowed a "bloody" war against crime and joked about Viagra use.