Stock market unfazed by DU30’s arrest

Despite the political noise surrounding the arrest of former president Rodrigo Duterte, analysts believe it will not have a significant impact on the capital market.

“I don’t think there should be any effect on the market. I can’t seem to see any effect on the market,” Philippine Stock Exchange (PSE) Chief Ramon Monzon told DAILY TRIBUNE. He also stressed that the bourse operates independently of political developments.

Meanwhile, analysts are awaiting further developments in the coming days.

“We don't see former president Rodrigo Duterte's arrest having an impact on the market since it has no significant effects on the economy and its outlook,” said Japhet Tantiango of Philstocks Financial, Inc.

“If this arrest triggers prolonged and escalated political turmoil, then that could be the time [when] it would have a negative impact,” he added, noting that it could particularly affect foreign investors' confidence.

Meanwhile, Michael Ricafort, chief economist at Rizal Commercial Banking Corporation (RCBC), stated that while the arrest may affect the political landscape, it is still too early to gauge the situation.

“There could be risks from political noise, [but we are] still [in a] wait-and-see [mode] in the coming days or weeks,” Ricafort said.

Luis Limlingan, Regina Capital Development Corp., head of sales, stated he sees the situation as a "status quo" for now.

Duterte, who arrived in Manila from Hong Kong on Tuesday, was arrested following an arrest warrant issued by the International Criminal Court (ICC). 

Interpol operatives served the former chief executive with an official notification from the ICC Prosecutor General regarding the arrest warrant for crimes against humanity related to extrajudicial killings during his administration's war on drugs.

The 79-year-old is reportedly in good health, following a check-up by government physicians.

Stocks in the red

The local bourse closed in the red on Tuesday, ending at 6,206.55, down by 154.22 points, or 2.42 percent. 

All sectors declined, with Properties leading the losers, down by 102.72 points, or 4.45 percent.

IPM Holdings, Inc. was the top index gainer, jumping 28.67 percent and closing at 1.84.

The US dollar to Philippine peso exchange rate finished at 57.225.