History Suggests a Boost May Be Coming for Philippine and Indonesian Stocks
- Shares in both nations tend to rally before, after elections
- Governments’ efforts to boost consumption help lift sentiment
March 12: Philippine Bourse in 'Serious' Talks With Singapore Exchange for Link
This article is for subscribers only.
While both Indonesian and Philippine stocks have seen their strong start to the year lose steam, upcoming elections might bring some relief. Not only do the markets tend to gain in the run-up to a ballot, they also tend to climb further after, history shows.
The Jakarta Composite Index advanced in every month preceding a vote, rising by an average 5.1 percent and beating the MSCI All-Country World Index in every instance but one, according to data compiled by Bloomberg going back to the 1980s. The Philippine Stock Exchange Index climbed in the month before an election in seven of the last nine instances.