The Morning View

A BusinessWorld poll of 18 analysts showed that the Philippines’ Gross Domestic Product (GDP) growth likely eased to 5.3% YoY in 3Q25 from 5.5% in the previous quarter. Analysts cited that softer government spending, typhoons, and corruption issues weighed on growth momentum. Nonetheless, they added that resilient household spending, supported by the central bank’s rate cuts, may have helped stabilize economic activity.

Semirara Mining and Power Corp. (PSE Ticker: SCC) reported a net income of PHP 1.48 billion (-53% YoY) in 3Q25. The weaker performance for the period was attributed to softer global coal (-20% YoY) and electricity prices (-23% YoY), which offset higher production and sales volumes. 

Local equities declined to a near seven-month low, local fixed income yields closed mixed, and the Philippine peso strengthened ahead of the local inflation and GDP growth data releases later this week. Expectations of a slower 3Q25 PH GDP growth print also dampened sentiment in the local bourse.

The PSEi closed at 5,828.06 (-1.71% DoD). 

On average, yields fell by 0.40 bps, with the 2Y closing at 5.38% (-1.07 bps) and the 10Y closing at 5.94% (+0.55 bps).

The USD/PHP pair closed at 58.79 (-0.10% DoD). 

Federal Reserve officials had conflicting views on a December rate cut, emphasizing the need for fresh data. Fed’s Cook and Daly supported the recent rate cut and signaled openness to another one in December but stressed that future decisions will depend on incoming data. On the other hand, Goolsbee cautioned against “front-loading” of rate cuts amid lack of data and rising inflation risks, while Miran reiterated his call for deeper rate cuts.

US Institute for Supply Management (ISM) manufacturing Purchasing Managers’ Index (PMI) fell to 48.7 in October (September: 49.1; consensus: 49.5), contracting for an eighth straight month. The decline was driven by longer delivery times, slower demand for new orders, weaker employment, and trade uncertainties that pressured supply chains. 

US equities ended mixed, US Treasury yields rose, and the US dollar slightly strengthened as investors weighed mixed signals from several Fed officials. Investors also digested news of OpenAI’s $38-billion cloud services deal with Amazon.

The S&P 500 closed at 6,851.97 (+0.17% DoD), while the DJIA ended at 47,336.68 (-0.48% DoD). 

On average, yields rose by 2.85 bps, with the 2Y closing at 3.61% (+3.10 bps) and the 10Y closing at 4.11% (+3.30 bps).

The DXY closed at 99.87 (+0.07% DoD). 

Sources: BusinessWorld, Inquirer, Philippine Star, Manila Bulletin, Businessmirror, PSE Edge, Bloomberg, CNBC, Reuters, CNN, Wall Street Journal, Financial Times, Market Watch

The views expressed herein by BPI Wealth – A Trust Corporation (“BPI Wealth”) are based on sources deemed reliable, but may be subject to change without notice. This material, which is strictly for information purposes only, is for your sole use, does not constitute a recommendation or an offer to sell or a solicitation to buy any financial product. Any information is subject to change without notice and BPI Wealth is not under any obligation to update or keep current the information contained herein. You are advised to make your own independent judgement with respect to the matter contained in the report. No liability whatsoever is accepted for any loss that may arise (whether direct or consequential) from any use of the information contained herein.

Unit Investment Trust Funds (UITFs) are NOT DEPOSIT products and are not an obligation of, or guaranteed, or insured by BPI Wealth or Bank of the Philippine Islands (BPI) or its affiliates or subsidiaries, and are not insured by the Philippine Deposit Insurance Corporation (PDIC). Due to the nature of the investment, yield and potential yields cannot be guaranteed. Any income or loss arising from market fluctuations and price volatility of securities held by a UITF, even if invested in government securities, is for the account of the investor/trustor. As such, units of participation of the investor/trustor in a UITF, when redeemed, may be worth more or be worth less than his/her initial participation/contribution. Historical performance, when presented, is purely for reference purposes and is not a guarantee of future results. BPI Wealth is not liable for losses, other than due to willful default, evident bad faith or gross negligence. Investors are advised to read the Declaration of Trust of the relevant UITF before deciding to invest. For inquiries and comments, visit the BPI Wealth website or call us at (02) 8580 - 2682.  

BPI Wealth is a subsidiary of the Bank of the Philippine Islands (BPI). BPI and BPI Wealth will never ask to verify or divulge your personal information such as your user ID, password and OTP (One-Time PIN) via phone, call, text messages (SMS) or link provided in emails. If you receive a call or email asking you to provide any confidential information, do not engage. Immediately change your online banking password and report the incident to 889-10000.  

BPI Wealth – A Trust Corporation is regulated by the Bangko Sentral ng Pilipinas. Visit the BSP website for more details.