The Weekly Review

Local equities rebounded amid improved market sentiment following the Israel-Iran ceasefire. Investors also welcomed S&P Global Ratings’ projections that the Philippines could be the second-fastest growing economy in the Asia and Pacific until 2027. 

Top performers were Ayala Land Inc. (PSE Ticker: ALI; +12.42%), JG Summit Holdings Inc. (JGS; +6.67%), and Converge Information and Communications Technology Solutions, Inc. (CNVRG; +6.58%). Meanwhile, Bloomberry Resorts Corporation (PSE Ticker: BLOOM; -3.00%), Alliance Global Group Inc. (AGI; -4.86%), and Emperador Inc. (EMI; -7.12%) were the laggards of the week.

▲ The PSEi closed at 6,408.27 (+1.08% WoW). 

Local fixed income fell amid easing inflation concerns following the Israel-Iran ceasefire. The Bureau of the Treasury (BTr) also made a partial award of the dual-tenor reissued T-bonds, with the 7Y raising its planned Php20 billion and the 25Y raising Php15 billion.

▼ On average, yields fell by 2 bps, with the 2Y closing at 5.72% (-2 bps) and the 10Y closing at 6.32% (-9 bps).

The Philippine peso strengthened as investors welcomed the fragile ceasefire reached by Israel and Iran, which led to a sharp decline in global oil prices.​

▼ The USD/PHP pair closed at 56.57 (-1.05% WoW).

US equities jumped on the back of easing geopolitical fears following the fragile Israel-Iran ceasefire and Commerce Secretary Lutnick’s statement that US-China trade framework was finalized and deals with 10 more trading partners were nearing conclusion.

▲ S&P 500 closed at a record high of 6,173.07 (+3.44% WoW).

▲ DJIA closed at 43,819.27 (+3.82% WoW).

US Treasury yields fell as the tentative ceasefire between Israel and Iran eased concerns over a potential global oil supply disruption. Investors also weighed reports that US President Trump might announce Fed Chair Powell's replacement early.​

▼ On average, yields fell by 8 bps, with the 2Y closing at 3.75% (-16 bps) and the 10Y closing at 4.28% (-10 bps).

The US dollar weakened as investors continued to monitor the easing Israel-Iran tensions. Additionally, traders weighed Trump’s early remarks on Fed Chair Powell’s potential replacement and its impact on the Fed's independence. 

▼ The DXY closed at 97.40 (-1.32% 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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