by Leslie D. Venzon, Philippine News Agency / Photo Courtesy from Google/Inquirer | Friday, 24 June 2016
The Philippine Stock Exchange (PSE) expects the solid economic fundamentals and the inherent strength of the financial market will able the country to ride out the effects of Britain’s withdrawal from the European Union (EU).
PSE President and Chief Executive Officer Hans B. Sicat said the outcome of the EU referendum had a negative impact on various asset classes and currencies, including the Philippine market.
Sicat said expected reaction in a British exit or “Brexit” case may prevail for the next few days as markets settle.
“Medium term, however, we think that the Philippine market will not be adversely affected as it is supported by the country’s solid economic fundamentals and the inherent strength of the local financial market,” he added.
The local stock barometer plunged 100.06 points or 1.29 percent to 7,629.72 on heavy sell-off on Friday.
“Risk-off trades and increased volatility due to the referendum in UK triggered liquidation activities causing investors to capitalize on their gains from the recent rally,” said BDO Unibank Inc. chief market strategist Jonathan Ravelas. (PNA)