Duterte arrest has no negative impact on investors

The arrest of former president Rodrigo Duterte has no negative effects on investor sentiment and is unlikely to cause political instability even with the midterm elections just around the corner, the finance chief said yesterday.

- LOUISE MAUREEN SIMEON

"I don't think (it will affect) because that has nothing to do with our macroeconomic fundamentals to begin with," Finance Secretary Ralph Recto said in an interview with Bloomberg TV.

"There was a slight reduction in the stock exchange but very subdued, but the peso appreciated on the day that he was arrested," he added.

The benchmark Philippine Stock Exchange index (PSEi) fell two percent a day after the arrest of Duterte, even dropping to as low as 6,156.97.

Toward the end of that week, however, investors picked up more shares with the PSEi rising by 0.83 percent or 52.04 points to close at 6,294.11.

On the other hand, the peso slightly appreciated against the US dollar to P57.225 on the day of Duterte's arrest from P57.41 the day prior.

"(The arrest) could also mean that the international community is looking at how important the rule of law is to us and that is part of governance as well," Recto said.