The Weekly Review

Local equities climbed amid bargain hunting at the start of the year. This was also after the S&P Manufacturing Purchasing Managers' Index (PMI) returned to expansionary territory and rose to 50.2 (November: 47.4) in December. 

​Top performers were Alliance Global Group, Inc. (PSE Ticker: AGI; +7.14%), ACEN Corp. (ACEN; +6.20%), and JG Summit Holdings, Inc. (JGS; +5.78%). Meanwhile, SM Prime Holdings, Inc. (PSE Ticker: SMPH; -0.64%), Bank of the Philippine Islands (BPI; -0.84%), and International Container Terminal Services, Inc. (ICT; -2.54%) were the laggards of the week.

▲ The PSEi closed at 6,135.06 (+1.14% WoW). 

Local fixed income yields inched higher as investors digested the jump in the government’s gross borrowings in November to Php113.53 billion, up by 74.55% YoY. 

▲ On average, yields rose by 1 bp, with the 2Y closing at 5.35% (0 bps) and the 10Y closing at 6.05% (0 bps).

The Philippine peso slightly weakened due to light trading activity amid the holiday-shortened week and as the government continued to review the 2026 national spending plan. The local currency was also weighed by the strengthening of the US dollar.

▲ The USD/PHP pair closed at 58.84 (+0.22% WoW).

US equities ended lower amid investors’ profit-taking towards the end of the year. Investors also weighed the Fed's December meeting minutes which showed a divided sentiment over the policy rate path.​

▼ S&P 500 closed at 6,858.47 (-1.03% WoW).​

▼ DJIA closed at 48,134.89 (-0.67% WoW). 

US Treasury yields closed mixed as the December meeting minutes revealed a cautious tone from Fed policymakers, highlighting difficulty in balancing inflation control with labor market stability.

▲ On average, yields rose by 3 bps, with the 2Y closing at 3.48% (-1 bp) and the 10Y closing at 4.19% (+6 bps). 

The US dollar strengthened as traders digested the lower-than-expected US initial jobless claims and the cautious tone of the Fed’s December meeting minutes. 

▲ The DXY closed at 98.42 (+0.41% 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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