Investors focused on eco**my instead of martial law, ING says

[ahlam1399]

http://img-s-msn-com.akamaized.net/tenant/amp/entityid/BBBGvnZ.img?h=100&w=100&m=6&q=60&o=f&l=fMARKET SENTIMENT is expected to remain broadly unaffected by the declaration of martial law in Mindanao despite questions about the legal basis for the declaration, an analyst with a global bank said.**ting that investors continue to take heart from the country's solid eco**mic footing, Jose Mario I. Cuyegkeng, senior eco**mist at ING Bank N.V. Manila, said market participants are **t pricing in a possible constitutional conflict that may arise as a result of President Rodrigo R. Duterte's decision to place the southern Philippines under military rule following terror attacks from the Maute group. "A constitutional crisis may develop if the Supreme Court or Congress decides that martial law has to be lifted or its scope reduced. The President last weekend threatened **t to listen or obey the decision of the Supreme Court or Congress and would prefer to listen to the security forces," Mr. Cuyegkeng said in a market report issued yesterday. "Market is **t taking the potential constitutional crisis seriously since Congress is likely to support the decision of the President." Mr. Duterte declared martial law in Mindanao on May 23 after the Maute rebel group launched a ****** of attacks in Marawi City. A week after the group raided Marawi, the military said it has regained control of the area. Legislators have yet to decide whether the House of Representatives and Senate need to convene a joint session to discuss the declaration days after Mr. Duterte submitted the official report to Congress leaders. The first regular session of the 17th Congress ends on Friday. Instead, Mr. Cuyegkeng said investors remain focused on the Philippines' strong macroeco**mic fundamentals, which has been providing some support for the peso. "[M]arkets continue to focus on the strong eco**mic fundamentals and the limited impact of the hostilities to overall eco**mic activity," the eco**mist said, referring to the recovery of the peso last week despite the martial law proclamation. The peso strengthened last week to close at P49.75 last Friday. However, the currency weakened on Monday, moving in sync with regional currencies as the dollar picked up. "These are unlikely to be affected for **w by the declaration of martial law and the threat to bring this to central and **rth Philippines," he added, referring to threats made by Mr. Duterte that he may place the entire country under military rule should the terror attacks spill over to the other regions.

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