Police officers stand beside bodies of victims after an explosion at a night market that has left at least 10 people dead and wounded several others in Davao city, Philippines late Friday, Sept. 2, 2016. AP Photo/Manman Dejeto
MANILA, Philippines – Domestic concerns, primarily the explosion in Davao, as well as the tiff between President Duterte and US President Barack Obama have started to spook investors, analysts said yesterday.
The benchmark Philippine Stock Exchange index (PSEi) plunged 100.08 points to close at 7,619.10, while the broader All Shares index retreated 51.49 points to close at 4,542.35.
The rest of the counters followed the same track except for the mining and oil, which managed to stay afloat with a 13.41-point increase at 10,695.52.
Analysts said domestic concerns have started to weigh on sentiment and in the long term could further spook investors.
In a report yesterday, for instance, Moody’s warned that if recent events lead to prolonged uncertainty around security or economic policy, such a development would eventually dampen business confidence and, consequently, economic outcomes.
On Sept. 2, a bomb detonated in a night market in Davao City, the largest municipality in the southern region of Mindanao.
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Following the incident, President Duterte declared a “state of lawlessness” nationwide, paving the way for heightened security measures, including the stepped-up deployment of soldiers and policemen in key areas.
Moody’s said the near-term sovereign credit impact of these developments is limited as we do not expect them to change economic and fiscal policies or outcomes.