The Weekly Review

Local equities rose as investor sentiment was lifted by the PH government's plan to hold talks with Iran for the safe passage of Philippine-bound ships through the Strait of Hormuz. This was also following signals from US President Trump that the war with Iran could be resolved within the next two to three weeks.​

Top performers were Ayala Corp. (PSE Ticker: AC; +5.74%), SM Prime Holdings Inc. (SMPH; +4.12%), and ACEN Corp (ACEN; +3.86%). Meanwhile, Metropolitan Bank & Trust Company (PSE Ticker: MBT; -4.55%), China Banking Corp. (CBC; -4.98%), and Digiplus Interactive Corp. (PLUS; -5.22%) were the laggards of the week.

▲ The PSEi closed at 5,998.68 (+0.43% WoW). 

Local fixed income yields ended slightly lower as investors weighed US President Trump’s remarks that the US could resolve the war with Iran within the next two to three weeks.

▼ On average, yields fell by 6 bps, with the 2Y closing at 5.96% (-5 bps) and the 10Y closing at 6.83% (-19 bps).

The Philippine peso strengthened as US President Trump's statement that the US could end its attacks in Iran within two to three weeks fueled hopes that the Middle East war could de-escalate soon. ​

▼ The USD/PHP pair closed at 60.16 (-0.64% WoW).​

US equities rebounded as investors digested signals of a potential de-escalation of the Middle East war. US President Trump delayed planned attacks on Iran's energy infrastructure for 10 more days and said that the military action could end in two to three weeks. Meanwhile, Iranian President Pezeshkian stated his openness to end the war, subject to guarantees that the conflict would not reoccur.​

▲ S&P 500 closed at 6,582.69 (+3.36% WoW).​

▲ DJIA closed at 46,504.67 (+2.96% WoW). 

US Treasury yields dropped after Fed Chair Powell signaled the Fed has room to monitor the impact of the Middle East tensions to the US economy and inflation before making further policy moves. Markets also digested the higher-than-expected ADP private payrolls of 62,000 in March and lower-than-anticipated weekly jobless claims of 202,000 for the week ended March 28. 

▼ On average, yields fell by 5 bps, with the 2Y closing at 3.85% (-7 bps) and the 10Y closing at 4.35% (-8 bps).

The US dollar weakened amid signals that the US-Iran war was approaching a resolution. Investors also digested the stronger-than-expected US jobs data, which pushed back rate cut expectations.

▼ The DXY closed at 100.03 (-0.12% 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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