The Morning View

The Philippine Statistics Authority (PSA) reported that the value of domestic trade in goods declined by 19.8% YoY to PHP 820.81 billion in 1Q26 amid slower economic growth and supply-chain disruptions. Machinery and mechanical appliances posted the highest outflow value at PHP 200.96 billion (24.5% share). Meanwhile, domestic trade by volume fell 35.3% YoY to 10.17 million tons as of 1Q26.

SM Investments Corporation (PSE Ticker: SM) increased its renewable energy use to 31% of its total power consumption in 2025, up from 27% in 2024. By using around 730 million kilowatt-hours of clean energy, the group cut over 370,644 metric tons of carbon emissions. SM leadership noted that shifting to green energy helps in controlling long-term electricity costs, improving operational efficiency, and building more resilient businesses.

Local equities rose, local fixed income yields fell, and the Philippine peso slightly strengthened following signs of progress in the US-Iran peace talks, which led to a decline in global oil prices. 

The PSEi closed at 6,009.38 (+0.80% DoD).

On average, yields fell by 2.43 bps, with the 2Y closing at 6.93% (-0.12 bps) and the 10Y closing at 7.55% (-19.66 bps).

The USD/PHP pair closed at 61.47 (-0.36% DoD).

US President Donald Trump stated that negotiations with Iran to extend the ceasefire and reopen the Strait of Hormuz are "proceeding nicely" but warned of attacks if talks fail. Meanwhile, Iran’s foreign minister and top negotiator arrived in Doha for discussions with Qatar's prime minister on a potential deal with the US to end the near three-month-old war.

Russia said it plans to conduct “systematic strikes” on Ukraine-linked defense sites and decision-making centers in Kyiv. In a separate statement, Russia urged foreign nationals to leave the city as soon as possible. It said the planned attacks are in response to what it described as continued strikes on civilians inside Russia. Meanwhile, Ukraine has also maintained strikes on Russian infrastructure and industrial sites.

US equities, US Treasury yields, and the US dollar were unchanged as markets were closed in observance of the Memorial day holiday.  

The previous close of the S&P 500 was at 7,473.47 (0.00% DoD), and the DJIA at 50,579.70 (0.00% DoD).

On average, yields fell by 4.54 bps, with the 2Y closing at 4.13% (0 bps) and the 10Y closing at 4.56% (0 bps).

The DXY was unchanged at 99.24 (0.00% DoD). 

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

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