The Weekly Review

Local equities rose as the announcement of a truce between the US and China boosted market optimism. The agreement included a 90-day pause on higher tariffs between the two nations. 

Top performers were GT Capital Holdings Inc. (PSE Ticker: GTCAP; +8.73%), International Container Terminal Services, Inc. (ICT; +6.49%), and Aboitiz Equity Ventures Inc. (AEV; +5.75%). Meanwhile, Puregold Price Club Inc. (PSE Ticker: PGOLD; -6.82%), China Banking Corp. (CBC; -7.78%), and Monde Nissin Corp. (MONDE; -13.18%) were the laggards of the week.

▲ The PSEi closed at 6,465.53 (+0.11% WoW). 

Local fixed income ended mixed as investors digested the US-China trade truce. This was also after the Bureau of the Treasury raised Php35 billion from its dual-tranche T-bond auction. 

▲ On average, yields rose by 2 bps, with the 2Y closing at 5.76% (-1 bps) and the 10Y closing at 6.17% (+3 bps).

The Philippine peso slightly weakened as traders assessed the country’s Overseas Filipino Workers’ (OFW) cash remittances data which grew by 2.6% YoY in March, the slowest in nine months.​

​

▲ The USD/PHP pair closed at 55.64 (+0.23% WoW).

US equities rose as investors’ fears of escalating global trade tensions eased following the announcement of a deal between the US and China, which included a temporary reduction of imposed tariffs for 90 days.  US tariffs on Chinese goods dropped from 145% to 30%, and China’s on US goods from 125% to 10%.

▲ S&P 500 closed at 5,958.38 (+5.27% WoW).

▲ DJIA closed at 42,654.74 (+3.41% WoW).

US Treasury yields ended higher and the US dollar strengthened following cautious remarks from Fed policymakers calling for patience as they wait for more economic data to assess the impact of tariffs. Additionally, investors also digested the University of Michigan's May survey which showed a surge in US consumers' inflation expectations.​

​

▲ On average, yields rose by 8 bps, with the 2Y closing at 4.00% (+11 bps) and the 10Y closing at 4.48% (+10 bps).

▲ The DXY closed at 101.09 (+0.75% WoW). 

Sources: BusinessWorld, Inquirer, Philippine Star, Manila Bulletin, Businessmirror, PSE Edge, Bloomberg, CNBC, Reuters, CNN, Wall Street Journal, Financial Times, Market Watch

The views expressed herein by BPI Wealth – A Trust Corporation (“BPI Wealth”) are based on sources deemed reliable, but may be subject to change without notice. This material, which is strictly for information purposes only, is for your sole use, does not constitute a recommendation or an offer to sell or a solicitation to buy any financial product. Any information is subject to change without notice and BPI Wealth is not under any obligation to update or keep current the information contained herein. You are advised to make your own independent judgement with respect to the matter contained in the report. No liability whatsoever is accepted for any loss that may arise (whether direct or consequential) from any use of the information contained herein.

Unit Investment Trust Funds (UITFs) are NOT DEPOSIT products and are not an obligation of, or guaranteed, or insured by BPI Wealth or Bank of the Philippine Islands (BPI) or its affiliates or subsidiaries, and are not insured by the Philippine Deposit Insurance Corporation (PDIC). Due to the nature of the investment, yield and potential yields cannot be guaranteed. Any income or loss arising from market fluctuations and price volatility of securities held by a UITF, even if invested in government securities, is for the account of the investor/trustor. As such, units of participation of the investor/trustor in a UITF, when redeemed, may be worth more or be worth less than his/her initial participation/contribution. Historical performance, when presented, is purely for reference purposes and is not a guarantee of future results. BPI Wealth is not liable for losses, other than due to willful default, evident bad faith or gross negligence. Investors are advised to read the Declaration of Trust of the relevant UITF before deciding to invest. For inquiries and comments, visit the BPI Wealth website or call us at (02) 8580 - 2682.  

BPI Wealth is a subsidiary of the Bank of the Philippine Islands (BPI). BPI and BPI Wealth will never ask to verify or divulge your personal information such as your user ID, password and OTP (One-Time PIN) via phone, call, text messages (SMS) or link provided in emails. If you receive a call or email asking you to provide any confidential information, do not engage. Immediately change your online banking password and report the incident to 889-10000.  

BPI Wealth – A Trust Corporation is regulated by the Bangko Sentral ng Pilipinas. Visit the BSP website for more details.