National Economic and Development Authority (NEDA) Undersecretary Rosemarie Edillon said on Wednesday the interest rates hike in the United States and the uncertainties in the market brought by the upcoming change in administration mainly affect the performance of the local stock market.
The Philippine Stock Exchange index (PSEi) has declined for two straight trading days after the conduct of the national and local elections.
The local bourse shed bigger on Wednesday by 1.27 percent to 6,635.86 from Tuesday’s losses of 0.58 percent.
During the Laging Handa public briefing, Edillon said should this downward trend continue, the economic team will closely monitor this development.
“So, iyon po ang kailangan nating bantayan dito, kasi kung halimbawa temporary po na pagbaba ay hindi po tayo gumagawa ng aksiyon sa mga temporary na pangyayari. Pero kung masu-sustain po ito, ito iyong kailangan nang mag-address (So that’s what we need to monitor here, because if, for example, this is only a temporary decline, we will not take any action due to temporary circumstances. But if it will be sustained, this is what we need to address),” the NEDA official said.
She said the decline of PSEi in the past two days is caused by several factors, including the interest rates hike in the US, and the uncertainties locally as the country transitions to a new leadership.
“It’s really a function of several factors ‘no. Isa na rin diyan iyong pagtaas ng interest rates sa US. So, iyong iba po ay pumupunta po sa US markets kasi biglang naging mataas na iyong returns doon sa kanila (One factor is the interest rates hike in the US. So, others are going to the US markets because of the higher returns there for them),” Edillon said.
She added the economic team hopes that the decline in the local stock market’s performance is temporary. (PNA)