The Weekly Review

Local equities inched up as investors bargain hunted, although gains were tempered by the weaker peso, stalled US-Iran ceasefire talks, and rising political uncertainty. Traders also weighed mixed corporate earnings and the MSCI announcement of Jollibee's deletion from the Philippines Standard Index.

​​​Top performers were Globe Telecom Inc (PSE Ticker: GLO; +6.68%), RL Commercial Reit Inc (RCR; +5.8%), and International Container Terminal Services Inc (ICT; +4.55%). Meanwhile, Digiplus Interactive Corp (PSE Ticker: PLUS; -7.15%), Converge ICT (CNVRG; -8.17%), and Jollibee Foods Corp (JFC; -14.53%) were the laggards of the week.

▲ The PSEi closed at 5,976.77 (+0.27% WoW). 

Local fixed income yields jumped sharply across the curve on the back of rising inflation concerns and expectations of further rate hikes from the Bangko Sentral ng Pilipinas. 

▲ On average, yields rose by 30 bps, with the 2Y closing at 6.77% (+38 bps) and the 10Y closing at 7.62% (+38 bps).

The Philippine peso weakened to a new all-time low, weighed by the spike in global oil prices and a broadly stronger US dollar amid a lack of progress in the US-Iran peace deal. Rising domestic political tensions also drove risk-off sentiment.​

​▲ The USD/PHP pair closed at 61.72 (+1.83% WoW).​

US equities closed mixed amid sustained optimism on artificial intelligence (AI) and hopes for tariff cuts following the Trump-Xi summit in Beijing. However, gains were pared as the faster-than-expected April Consumer Price Index (CPI) inflation of 3.8% YoY (March: 3.3%; Consensus: 3.7%), above-consensus April Producer Price Index (PPI) inflation of 6.0% (March: 3.3%; Consensus: 4.8%), stalled US-Iran ceasefire talks, and rising rate hike expectations weighed on sentiment.

▲ S&P 500 closed at 7,408.50 (+0.13% WoW).

▼ DJIA closed at 49,526.17 (-0.17% WoW). 

US Treasury yields soared as market expectations for monetary policy shifted toward further rate hikes, driven by a week of higher-than-expected April consumer and producer price inflation reports as well as news of Kevin Warsh’s confirmation as Fed Chair. 

▲ On average, yields rose by 15 bps, with the 2Y closing at 4.08% (+19 bps) and the 10Y closing at 4.59% (+24 bps).

The US dollar strengthened amid rising expectations of tighter US monetary policy due to the faster-than-expected US inflation prints.

▲ The DXY closed at 99.28 (+1.41% 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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