Hi guys! It's been a month since I've started The Investing P.O.V. I want it to be a blog about investing on market and also in yourself and in people around you which the first few post are all about my experiences as a student leader and a financial advocate.
But now that June has ended and we are headed to the 2nd half of 2016, I want to start a new segment entitled my Monthly Market Review, where I want to talk about and share my experience as an investor for the past month.
June was such a wow month for me and that was mainly because I have experienced what many financial analysts called the "honeymoon period" for the newly elected president, Pres. Rodrigo Duterte. At first I was curious as to how that would affect the market which was trading
at 6084.28 -- its lowest point last January -- to a high of 7816.86 as of today (via Bloomberg.com) despite issues of Fed rate hikes and the unexpected Brexit referendum results which caused the British Pound to demonetize significant. Truly, the market has recovered from its beginning-of-the-year slump.
In my opinion, the positive and warm acceptance of investors to the Duterte administration was really one of the major factors as to why despite globally economic uncertainties, the PSEi continued to rise especially if your compare it to other stock markets in the ASEAN Region. In a way, I think we are lucky that Brexit and other economic issues coincided with the first 100 days of the Duterte administration or else the market would have been in the red for quite a while now.
Looking at the President's main agenda, you could see a lot of growth potential for the companies as the President plans to decentralize, economic growth and focus expansion of business and industries in the Visayas and Mindanao which will be very benefited and boosted stock prices of a lot of companies operating in the said regions. Investor also welcome Pres. Duterte's plans to ease traffic congestion in Metro Manila which might bring light to more cash inflows to construction and infrastructure companies. There were also plans to lower electricity in other to help ease the life of ordinary Filipino citizens.
However, things are not looking quite good some sectors especially for the Mining industry as new Department of Environmental and Natural Resources (DENR) Secretary Ms. Gina Lopez urges responsible mining where she and her department has started the audit of mining companies in operation.
The PSEi might continue its rise this July but this depends on the outcomes of the implemented agenda of the new administration. We should also keep in mind that August is coming and analyst are forecast a dip in the market sometime during that month.
This is Jernica on her Monthly Market Review for June 2016.
Do you have any questions or suggestions on what I should talk about next? Comment them below! Also, I would love to hear your thoughts/ Hope you can follow me on twitter @TheInvestingPOV
'Til next week!
Cheers!
Disclaimer: The article is based on my personal opinions and experiences.
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