Local key events

The Bangko Sentral ng Pilipinas (BSP) reported that the PH current account deficit surged 105% YoY in 1Q25 to $4.25 billion. The BSP attributed this to the widening merchandise trade gap, as import spending grew faster than export earnings. This was partially moderated by higher cash remittances, up by 2.7% YoY to $8.44 billion in 1Q25.  

 

Aboitiz Power (PSE Ticker: AP), Aboitiz Equity Ventures’ (PSE Ticker: AEV) power unit, has secured the Securities and Exchange Commission’s approval for a shelf registration of up to Php100 billion in fixed-rate bonds. AP plans to offer up to Php30 billion in the first tranche from June 23 to 27, with listing scheduled for July 7. 

Local indices

Local equities inched up as investors weighed the better-than-expected May consumer and producer price inflation figures in the US. However, gains were capped by rising geopolitical tensions in the Middle East. The PSEi closed at 6,395.59 (+0.22% DoD). 

 

Local fixed income yields were flat ahead of the US Fed and Bangko Sentral ng Pilipinas’ policy meetings this week. On average, yields rose by 0.01 bps, with the 2Y closing at 5.71% (+0.08 bps) and the 10Y closing at 6.35% (+1.62 bps).

 

The Philippine peso weakened following the jump in oil prices as geopolitical tensions escalated between Israel and Iran. The USD/PHP pair closed at 56.21 (+0.58% DoD). 

Global key events

Israel launched a major military attack on Iran last Friday, targeting its nuclear and military sites. Iran responded with a barrage of missiles and drones targeting major Israeli cities. Consequently, oil prices rose 7% DoD higher amid fears of a wider regional conflict.

 

University of Michigan’s Consumer Sentiment Index improved to 60.5 in June from 52.2 in May as trade tensions between the US and China eased. However, consumers remain cautious as they still perceive downside risks to the economy. Meanwhile, consumer’s 12-month inflation expectations fell to 5.1% from 6.6% in May.

US indices

US equities fell, US Treasury yields climbed, and the US dollar strengthened amid escalating Israel-Iran tensions, stoking fears of global oil supply disruptions and potential inflationary pressures. 

 

The S&P 500 closed at 5,976.97 (-1.13% DoD), while the DJIA ended at 42,197.79 (-1.79% DoD).

 

On average, yields rose by 2.79 bps, with the 2Y closing at 3.95% (+3.80 bps) and the 10Y closing at 4.40% (+4.00 bps).

 

The DXY closed at 98.18 (+0.27% DoD). 

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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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