The attack on Resorts World Manila, which in the end happened to be just an isolated case of simple public disorder by a distraught individual over his gambling losses, has served as a grim reminder of how terrorism is now affecting life and productivity.
Because of this tragic act of a disturbed individual who ended up dead, 37 innocent victims also lost their lives and along with their deaths the subsequent actual economic losses to their families.
Moreover, aside from the destruction to property and additional expenses to address the medical and burial needs of the victims, Resorts World may soon as well be facing a lawsuit that would potentially add more strain to its already burdened finances.
Thus, although the market still ended with a gain of 40.17 points or 0.51 percent week-on-week, the recent acts of terrorism in the country had certainly contributed to the market’s drop last Friday.
Except for the mining and oil sector, all counters ended in negative territory. Both the Philippine Stock Exchange index (PSEi) and All-Shares index closed lower with losses of 19.83 points or 0.25 percent and 14.19 points or 0.30 percent, respectively.
Total value turnover was high at P13.27 billion on a trading volume of 1.44 billion shares. But with 78 advances, 110 declines and 56 unchanged transactions for the day, the turnaround that can be expected from a high value turnover and small volume transaction mix may not yet be in the offing.
If we are to look at the market’s pattern, it’s again within the levels where it has found strong price resistance.
As of last Friday, the market was only 54.67 points or 0.69 percent away from its recent closing high on May 8. Not far above, too, were the price levels still supported by the market’s present major fundamentals.
Prospects
The way it looks, present market fundamentals may not be changing that soon. Most of the big-ticket projects that may possibly bring high growth and further development are still in the negotiation stage or about to be launched. Most of these projects may start to materialize in the next two years.
In the meantime, there are just too many uncertainties affecting the market. Much of them are caused by acts of terrorism and/or by conflicts that are simply endangering the country’s peace and order situation.
They are the clear and present dangers preventing productivity and economic growth.
Over the weekend, UK faced another terror act. Seven died and around 48 injured when a van drove into pedestrians on the London Bridge and men stabbed people at the Borough Market. The incidents, on the heels of the attack at a pop icon’s concert, happened just days before the scheduled national election on June 8.
These events will soon take their toll on the market. They will and surely soon impact negatively on the economy and the market’s near-term performance.
Bottom line spin
Under this present situation but, at the same time, fully confident that things will ultimately turn for the better in the next two years or so, one must continue to hold on to bottom-up investing as an effective tool to win your game in the market.