The Weekly Review

Local equities closed lower as investors rotated out of power sector names after regulatory proposals to eliminate system loss charges. This was also after the August PSEi rebalancing which removed Converge ICT and added Maynilad to the index. 

Top performers were Converge ICT (PSE Ticker: CNVRG; +7.91%), Ayala Corp. (AC; +5.46%), and Aboitiz Equity Ventures, Inc. (AEV; +4.72%). Meanwhile, Semirara Mining And Power Co. (PSE Ticker: SCC; -5.98%), JG Summit Holdings, Inc. (JGS; -6.51%), and Manila Electric Co. (MER; -20.00%) were the laggards of the week.

▼  The PSEi closed at 6,236.44 (-0.71% WoW). 

Local fixed income yields fell after the Bureau of the Treasury’s dual-tenor Treasury bonds saw strong demand. Nonetheless, volatility persisted amid the evolving US-Iran geopolitical developments and the US Fed po-licy meeting within the week. 

▼ On average, yields fell by 3 bps, with the 2Y closing at 6.7% (-2 bps) and the 10Y closing at 7.43% (-18 bps).

The Philippine peso strengthened, supported by the decline in global oil prices after the US and Iran halted attacks. Investors also digested BSP Governor Remolona's remarks that more aggressive policy tightening remains possible but unlikely.​

▼ The USD/PHP pair closed at 61.24 (-0.98% WoW).​

US equities rose as investors digested a slew of macroeconomic developments, including the Fed’s decision to keep policy rates steady at 3.50%-3.75%, resilient 2Q26 Gross Domestic Product (GDP) growth of 1.5% QoQ (Consensus: 2.0%, 1Q26: 2.1%), and in-line June core Personal Consumption Expenditure (PCE) inflation of 3.3% YoY (Consensus: 3.3%, May: 3.4%). Moreover, Amazon’s upbeat quarterly earnings helped ease investors’ worries over rising spending on AI.

▲ S&P 500 closed at 7,489.72 (+1.05% WoW).

▲ DJIA closed at 52,485.03 (+1.04% WoW). 

US Treasury yields closed mixed following the Fed’s decision to keep the policy rates steady, but with three policy members dissenting in favor of raising rates by 25 bps. Investors also weighed the below-consensus 2Q26 US GDP and in-line June US Core PCE inflation, alongside hawkish remarks from Fed officials Beth Hammack, Neel Kashkari, and Lorie Logan.

➖ On average, yields were flat, with the 2Y closing at 4.29% (-4 bps) and the 10Y closing at 4.74% (+6 bps).

The US dollar weakened after the Fed decided to leave interest rates steady. Moreover, The stronger Japanese yen also weighed on the greenback following government interventions.

▼ The DXY closed at 99.91 (-1.53% WoW). 

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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