Mario's Impact

With 7 dead and millions of properties destroyed. At last, the stormed is out of the Philippine Area of Responsibility (PAR). Now, the impact...

Would it pull down the market? I think, it would, but not to a point where we would see below 7000. Not for now. US market is in steroid mode due to Alibaba IPO and something about interest rate being maintained to its current rate. So we MIGHT still see green on Monday.

Filipino are now more aware of the danger of typhoons. BER months is unofficial start of holiday in the Philippines but at the same time it brings it dangerous cousin as well. It is a time where most of the typhoons visit the country. The time where Metro Manila becomes flooded and rivers becomes a bit cleaner. Where covered court and schools becomes evacuation centers and Politicians becomes significant.

What company would be affected? I would say power distributions and telecommunication providers due to additional expenses that they will incurred in the rehabilitation of their infrastructures. But maybe they already have standby calamity fund since these bad weather conditions always happen in these time of year. I really hope so. But who will pay - of course, their customers. So there might be some increases in their charges. I really hope not.

Of course, those that supply food will definitely earn more. Government and Non-Government Organisations will surely buy food to give to those affected by Mario. Company such as URC and COSCO are some of the few. It is BER month, so, I can see a good year for these companies.

The only question I have in mind is - how long the market will hold? 2 years... 3 years?