Corona impeachment trial no effect in economy: analyst
Thursday, 19 January 2012 00:00
A STOCK analyst has expressed confidence that the impeachment trial against Supreme Court Chief Justice Renato Corona will not dampen the positive outlook in the trading sector, and that stocks will even break out from the high of 4,600 level. "We don't think the impeachment of CJ (Chief Justice) will have any direct impact on the economy. In fact, we think corrupt government officials will think twice before doing corrupt practices, which should be a long-term positive (impact)," April Tan, Citiseconline researcher, said in an interview with PNA.
"Yes, we are quite confident that 4,600 (level) can be breached," she added. PSEi in fact gained on Tuesday, despite fear of constitutional crisis as a result of the impeachment trial. However, the market shed few points on the first day of the trial Monday, but Tan said it has nothing to do with the trial at the Senate and that market activities in the coming days depend more on developments on world economies.
"I don't think the decline had anything to do with the trial. It was largely due to profit taking since the market had a good run earlier on," she noted. During former president Joseph Estrada's trial, the market clashed down to its record lowest. "(But) The market actually went up significantly when he (Estrada) resigned. It actually fell initially before the events that led to the people power 2," she recalled. Businessmen pin their hopes on the fulfillment of President Benigno Aquino's campaign slogan that 'if there is no corruption, there will be no poverty.'
"The more important drivers for the Philippines include: the government 's progress on it s fiscal spending, progress on the private-public partnership (PPP) and developments in Europe and the US that would al low risk appetite to return," she added. PNA
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