There were significant developments last week that could have very positive impact not only on the market performance this week but, very possibly, up to the end of the year.
Last Tuesday, newspapers bannered Pulse Asia’s findings on the approval and trust ratings of a number of the country’s highest officials. The survey, which was conducted from June 24 to 29 showed President Duterte, among others, continued to enjoy popularity and the confidence of our countrymen. The ratings even improved from the results of the March survey.
The President’s approval rating rose to 82 percent from 78 percent. He was also able to get a high trust rating of 81 percent, up from 76 percent.
The survey covered 1,200 adults from the different demographics and had a margin of error of plus-or-minus 3-percentage points.
On Friday, the benchmark Philippine Stock Exchange index (PSEi) ended with a gain of 85.39 points or 1.08 percent to 7,989.73 while the broader All Shares index gained 32.81 points or 0.69 percent to end at 4,771.64. Further, the PSEi ended with a strong weekly gain of 103.83 points or 1.32 percent and a year-to-date advance of 1,149.09 points or 16.80 percent.
All counters were in positive territory. The property sector led the advance, rising 1.66 percent. The holding firms and mining and oil sectors added 0.97 percent and 0.83 percent, respectively, helping the market’s overall advance.
The run-up last Friday was powered by “bargain hunting” which was, in turn, inspired by the “positive sentiments” investors had in anticipation of the President’s State of the Nation Address (Sona).
On Thursday, Malacañang held a press conference describing what to expect from the President’s speech. Officials described it as “not just an ordinary technical report” but a “sensible, solid and forward-looking speech” answering the general populace’s concerns.
Among these are the measures to solve the traffic problem that continues to drag down the productivity of the country, his “build, build, build” (infrastructure) programs, the campaign against terrorism, the passage of the Bangsamoro Basic Law as part of the new formula to capture that elusive peace in Mindanao and the recovery plans for Marawi City.
Most significantly, the President got an overwhelming support from the Senate and House of Representatives, which convened on Saturday in a special joint session, to extend Martial Law and the suspension of the privilege of the writ of habeas corpus in the whole of Mindanao up to December 31, 2017.
Bottom line spin
These developments have virtually smoothened the President’s path to lead and realize his socioeconomic and development programs. They have, as well, given him a “comfort level” possibly even higher than that enjoyed by President Corazon Aquino following the People Power Revolution in 1986.
Still, there are things that could change the otherwise “clear and smooth path” Mr. Duterte appears to be enjoying at the moment, much like what happened during President Cory’s time.
And just like how things in the market can suddenly change, the present administration’s promising future might also disappear.
If the bad weather outlook released for this week by the Philippine Atmospheric, Geophysical and Astronomical Administration (Pagasa) is of any indication, the present administration’s “clear skies,” so to speak, will be in for some bad weather conditions.