A victory by Philippine boxing hero Manny Pacquiao this weekend will probably lift stocks along with spirits in the nation reeling from one of the deadliest storms in its history, according to BDO Unibank Inc.
The CHART OF THE DAY shows the Philippine Stock Exchange Index has risen 73 percent of the time in the first trading day after a Pacquiao win, compared with 52 percent for all days since 2007. The gauge climbed an average 0.5 percent the day after fights, versus an average 0.04 percent increase for the entire period.
“Pacquiao’s victory in the ring creates a nationwide euphoria that things will get better -- positive sentiment, positive investment,” said Jonathan Ravelas, chief market strategist at BDO Unibank in Manila. “A victory by Pacquiao will help lift the Philippine spirit at a time when it’s facing the impact of calamities. The nation definitely needs to hear something positive right now.”
The Philippines is grappling with the effects of Typhoon Haiyan, which slammed into the central part of the country on Nov. 8, killing at least 4,011 and injuring 18,557. The stock gauge has lost 3.7 percent since the storm hit, making it the world’s second-worst performer. Pacquiao, nicknamed Pac-Man, will face former world lightweight champion Brandon “Bam Bam” Rios on Nov. 24 at the Venetian resort in Macau.
Pacquiao was elected to Congress in May 2010 after winning world championships in eight weight classes. He was victorious in 11 fights in a row from 2007 to 2011, as part of a six-year winning streak, before losing his last two fights, to Timothy Bradley and Juan Manuel Marquez. William Hill Plc, a U.K. bookmaker, is offering odds of 1 to 6 on Pacquiao to win, meaning a $60 bet would return a $10 profit. Rios is at 4 to 1.