MANILA— Stock market experts welcomed President Aquino’s continued emphasis on improving governance but they were mostly disappointed with the lack of forward-looking statements on macroeconomics and business at this year’s State of the Nation Address (SONA).
While the President mentioned the stock market’s run-up to record highs, Joseph Roxas, president of stock brokerage Eagle Equities, said there wasn’t any “market-moving” news in this year’s SONA.
“I would have wanted to hear more about the solutions,” Roxas said, noting for instance the perennial problem of high electricity costs in the country.
Asiasec Equities chief strategist Manny Cruz had a similar view. “The government is committed to changing the political landscape by improving the justice system. However, it falls short of investor expectations that the President will dwell more on current projects especially the PPP (public-private partnership framework on infrastructure-building), which has been taking sometime to take off also,” said Cruz.
Many investors had been looking forward to the PPP framework, unveiled during the first SONA a year ago, as a potential growth catalyst in the years ahead.
“I’m optimistic about his commitment to fight graft and punish corrupt officials. It’s ‘freakonomics’ in action. However, it’s worrisome that President Aquino didn’t cite any economic target. It’s a message of socio-political not socio-economic transformation. I will take out and polish my crystal ball and store away my spread sheets for now,” said Jose Mari Lacson, research head of local stock brokerage Campos Lanuza & Co.
Astro del Castillo, managing director at local fund management firm First Grade Holdings, said he was disappointed with the SONA. “It’s not even enough to feed the (stock market) bull to run,” Del Castillo said.
“I didn’t hear anything about the economy especially given that we’re facing a potential global financial crisis triggered by the so-called debt crisis in America,” Del Castillo said./INquirer