The Weekly Review

Local equities gained as investors cheered the June local headline inflation, which decelerated more than expected to 6.4% YoY (May: 6.8%, Consensus: 6.5%). The local bourse was also supported by net foreign inflows, led by heavy buying in port operator International Container Terminal Services Inc. (ICT).

Top performers were ICT (PSE Ticker: ICT; +7.89%), Century Pacific Food, Inc. (CNPF; +5.52%), and Ayala Land, Inc. (ALI; +3.63%). Meanwhile, GT Capital Holdings, Inc. (PSE Ticker: GTCAP; -4.07%), Puregold Price Club, Inc. (PGOLD; -4.96%), and Converge Information And Communications (CNVRG; -7.07%) were the laggards of the week.

▲  The PSEi closed at 6,286.70 (+1.59% WoW). 

Local fixed income yields jumped following reports that the US conducted fresh military strikes on Iran, pushing global oil prices higher and stoking inflation concerns.

▲ On average, yields rose by 5 bps, with the 2Y closing at 6.42% (+8 bps) and the 10Y closing at 7.26% (+12 bps).

The Philippine peso weakened amid a stronger US dollar after the re-escalating geopolitical tensions in the Middle East as well as the hawkish signals from the US Fed's June meeting minutes. ​

▲ The USD/PHP pair closed at 61.52 (+0.16% WoW).

US equities closed mixed as investors looked ahead to the 2Q26 earnings season. The market also digested SK Hynix’s Nasdaq listing of its American Depositary Receipts (ADR), which fueled optimism about memory-chip makers. However, gains were capped after the US carried out fresh military strikes on Iran, including on commercial vessels in the Strait of Hormuz, which pushed oil prices higher.

▲  S&P 500 closed at 7,575.39 (+1.23% WoW).

▼  DJIA closed at 52,637.01 (-0.50% WoW). 

US Treasury yields soared amid rising inflationary concerns following renewed strikes by the US and Iran even as President Trump announced last Friday that the two countries would continue peace talks. 

▲ On average, yields rose by 6 bps, with the 2Y closing at 4.21% (+7 bps) and the 10Y closing at 4.56% (+8 bps).

The US dollar slightly strengthened on the back of safe-haven demand as markets remained cautious after the military attacks between US and Iran. 

▲ The DXY closed at 100.95 (+0.09% 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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