The Weekly Review

Local equities rose amid investors’ bargain hunting and positive spillovers from the global markets.

​Top performers were Aboitiz Equity Ventures, Inc. (PSE Ticker: AEV; +7.42%), SM Prime Holdings, Inc. (SMPH; +6.31%), and Alliance Global Group, Inc. (AGI; +5.62%). Meanwhile, AREIT, Inc. (PSE Ticker: AREIT; -1.25%), Puregold Price Club, Inc. (PGOLD; -4.36%), and DigiPlus Interactive Corp. (PLUS; -4.88%) were the laggards of the week.

▲ The PSEi closed at 6,065.64 (+2.45% WoW). 

Local fixed income yields rose after the Bureau of the Treasury announced its 1Q26 domestic borrowing plan of up to PHP 824 billion, a jump from the previous quarter’s PHP 437 billion.

▲ On average, yields rose by 3 bps, with the 2Y closing at 5.35% (+5 bps) and the 10Y closing at 6.05% (+7 bps).

The Philippine peso ended flat amid a holiday-shortened week. The local currency initially weakened after the country’s balance of payments posted a deficit in November. Nonetheless, the decline in global oil prices amid hopes of a Ukraine peace deal helped temper the weakness. 

▼ The USD/PHP pair closed at 58.71 (+0.02% WoW).

US equities rose following the rebound in tech stocks ahead of the Christmas holidays. Investors also cheered the stronger-than-expected US Gross Domestic Product (GDP) growth of 4.3% QoQ annualized rate in 3Q25 (2Q25: 3.8%; Consensus: 3.2%) and the decline in weekly initial jobless claims by 10,000 to 214,000 for the week ended December 20.

▲ S&P 500 closed at 6,929.94 (+1.40% WoW).

▲ DJIA closed at 48,710.97 (+1.20% WoW). 

US Treasury yields inched lower after the Conference Board’s US consumer confidence index hit 89.1 in December (November: 92.9),  its lowest level since April. Yields were also affected by thin holiday trading and a lack of fresh catalysts amid the Christmas holidays.

▼On average, yields fell by 1 bp, with the 2Y closing at 3.48% (0 bp) and the 10Y closing at 4.13% (-2 bps).

The US dollar weakened amid lighter trading volume during the holiday season. The stronger Japanese yen also weighed on the greenback following the guidance from Japanese officials on possible currency interventions. 

▼ The DXY closed at 98.02 (-0.59% 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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