Investors remain cautious

FINANCIAL markets will be closed Monday due to the national elections, the outcome and credibility of which would help determine the market’s direction for the rest of this week.

The benchmark Philippine Stock Exchange index (PSEi) slid anew on Friday and on a week-on-week basis, stocks sank 2.34 percent to 6,991 as worries about the health of the global economy persisted and as investors took a more cautious approach ahead of voting on Monday.

AB Capital Securities said net foreign selling for the week hit P200 million. It cited the Bank of Japan’s unexpected decision to hold off on more stimulus, thus weighing on risky assets. Moreover, several economic indicators in China pointed to a further slowdown in its economy.

“Filipinos will also vote in the national elections, causing more economic and political uncertainty to the local markets,” AB Capital said.

The presidential race is led by a tough-talking local politician, Davao City Mayor Rodrigo Duterte, who has kept a big lead in pre-election surveys against administration bet Manuel Roxas II and Sen. Grace Poe. Two other candidates, Vice President Jejomar Binay and Sen. Miriam Defensor Santigao have been trailing in pre-election surveys. Miguel R. Camus