The Weekly Review

Local equities rose as investors cheered the policy rate cuts delivered by the US Federal Reserve and Bangko Sentral ng Pilipinas (BSP).​

Top performers were Acen Corp. (PSE Ticker: ACEN; +10.88%), JG Summit Holdings Inc. (JGS; +8.65%), and Ayala Land Inc. (ALI; +6.37%). Meanwhile, Semirara Mining And Power Co. (PSE Ticker: SCC; -1.92%), Globe Telecom Inc. (GLO; -1.95%), and Digiplus Interactive Corp. (PLUS; -22.17%) were the laggards of the week.

▲ The PSEi closed at 6,036.72 (+1.47% WoW). 

Local fixed income yields climbed on tempered BSP and Fed rate cut expectations following each central bank’s forward guidance in their December policy meetings. The Fed forecasts one more rate cut for 2026, while the BSP said that depending on data, it could be nearing the end of its policy easing cycle. ​

▲ On average, yields rose by 5 bps, with the 2Y closing at 5.25% (+6 bps) and the 10Y closing at 6.03% (+11 bps).

The Philippine peso weakened following the rate cuts from the BSP and the Fed in the past week. Remolona also stated that the central bank has room for one last 25-bp cut next year amid benign inflation and weakened economic growth.

▲ The USD/PHP pair closed at 59.07 (+0.22% WoW).

US equities were mixed amid a sell-off of tech stocks as investors rotated to value names. Investors also digested the Federal Reserve's decision to cut its policy rate by 25 bps to the 3.50-3.75% range. This was also following the higher-than-expected weekly initial jobless claims1 of 236,000 for the week ended December 6.

▼ S&P 500 closed at 6,827.41 (-0.63% WoW).​

▲ DJIA closed at 48,458.05 (+1.05% WoW). 

US Treasury yields closed mixed as investors weighed the Fed’s policy rate cut and the revised economic projections which pointed to stronger growth and lower inflation in 2026. Markets also assessed Fed Chair Powell's comment that the Fed is well-positioned to wait and see how the economy evolves.​

➖ On average, yields were flat, with the 2Y closing at 3.52% (-4 bps) and the 10Y closing at 4.19% (+5 bps).

The US dollar weakened following the US Fed’s latest 25-bp rate cut and updated economic projections.

▼ The DXY closed at 98.40 (-0.60% WoW).

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.