The Weekly Review

Local equities rose on the back of bargain hunting and net foreign buying. However, gains were tempered by a higher Philippine unemployment rate of 5.4% in September (Aug.: 5.3%) and weaker agricultural production in 3Q26.

Top performers were Monde Nissin Corp. (PSE Ticker: MONDE; +7.20%), BDO Unibank, Inc. (BDO; +5.93%), and Manila Electric Company (MER; +5.44%). Meanwhile, International Container Terminal Services, Inc. (PSE Ticker: ICT; -2.62%), Globe Telecom Inc (GLO; -3.40%), and DigiPlus Interactive Corp. (PLUS; -5.60%) were the laggards of the week.

▲  The PSEi closed at 5,761.95 (+1.44% WoW). 

Local fixed income yields declined despite the faster-than-anticipated October local CPI inflation of 7.8% (Consensus: 7.6%) as markets digested reports of a potential diplomatic resolution to the US-Iran war and the decline in global oil prices. 

▼ On average, yields fell by 6 bps, with the 2Y closing at 7.26% (-7 bps) and the 10Y closing at 7.91% (-22 bps).

The Philippine peso strengthened as global oil prices fell on hopes for a de-escalation in the US-Iran war following the Democrats’ major victory in the US midterm elections.​

​▼ The USD/PHP pair closed at 63.06 (-1.07% WoW).​

US equities fell, led by a sharp decline in AI-related tech stocks, as major Democratic wins in both the House and Senate in the US midterm elections raised concerns that data center investment and construction could slow.​

​▼ S&P 500 closed at 7,376.86 (-2.68% WoW).​

▼ DJIA closed at 51,285.73 (-0.94% WoW). ​

US Treasury yields dropped amid a sharp decline in global oil prices, the Democrats’ sweeping victory in the US midterm elections, and stronger demand for safer assets following a stock market sell-off. The decline was also despite the stronger-than-expected October US nonfarm payroll gains of 165,000 (Sept.: 60,000; Consensus: 70,000) and a lower US unemployment rate of 4.1% (Sept. and Consensus: 4.2%).​

​▼ On average, yields fell by 5 bps, with the 2Y closing at 4.52% (-8 bps) and the 10Y closing at 4.86% (-7 bps).​

The US dollar strengthened following the robust October nonfarm payroll gains and lower-than-expected unemployment rate which boosted Fed rate hike expectations.

▲ The DXY closed at 102.30 (+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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