The Weekly Review

Local equities rose on continued bargain hunting. Investors also weighed easing trade war concerns amid remarks from the US government that US-China trade war is not sustainable. 

Top performers were Universal Robina Corp. (PSE Ticker: URC; +14.44%), Bloomberry Resorts Corp. (BLOOM; +13.43%), and Puregold Price Club, Inc. (PGOLD; +11.52%). Meanwhile, Globe Telecom, Inc. (PSE Ticker: GLO; -4.25%), Manila Electric Company (MER; -4.91%), and ACEN Corp. (ACEN; -4.96%) were the laggards of the week.

▲ The PSEi closed at 6,268.75 (+2.19% WoW). 

Local fixed income yields ended mixed amid volatility due to global trade uncertainties and after the Philippine government raised Php300 billion from its new 10Y bonds, with a coupon rate of 6.375%.

➖ On average, yields were flat, with the 2Y closing at 5.75% (-1 bp) and the 10Y closing at 6.34% (+4 bps).

The Philippine peso strengthened amid easing trade war concerns after the US government signaled openness to negotiate with China for potentially lower tariffs, and reports that China may suspend tariffs on select US imports.​

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▼ The USD/PHP pair closed at 56.27 (-0.94% WoW).

US equities rose as investors digested signs of easing US-China trade tensions and a slew of corporate earnings releases. Treasury Secretary Bessent’s statement that there "will be a de-escalation" in the trade war and reports that China may suspend tariffs on select US goods lifted market sentiment. Moreover, better-than-expected earnings from Alphabet also boosted tech shares. 

▲ S&P 500 closed at 5,525.21 (+4.59% WoW).

▲ DJIA closed at 40,113.50 (+2.48% WoW).

US Treasury yields declined following recent comments from US Treasury Secretary Bessent that the US administration is open to de-escalate the trade war with China and that elevated US-China tariffs are not sustainable. This was also following reports stating that China may suspend tariffs on select US goods.​

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▼ On average, yields fell by 6 bps, with the 2Y closing at 3.75% (-5 bps) and the 10Y closing at 4.24% (-9 bps).

The US dollar strengthened as indications of the US' willingness to ease trade tensions with China lifted investors’ confidence. This also followed reports suggesting that China might suspend certain tariffs on selected US products.

▲ The DXY closed at 99.47 (+0.24% 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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