The Weekly Review

Local equities declined as investors adjusted their positions amid the MSCI rebalancing and weighed the Bangko Sentral ng Pilipinas’ (BSP) decision to raise its policy rate by 25 bps to 5.00%. 

Top performers were Ayala Land, Inc. (PSE Ticker: ALI; +2.78%), Emperador, Inc. (EMI; +2.40%), and Puregold Price Club, Inc. (PGOLD; +2.37%). Meanwhile, Bank of the Philippine Islands (PSE Ticker: BPI; -6.80%), International Container Terminal Services, Inc. (ICT; -7.86%), and Semirara Mining and Power Company (SCC; -8.02%) were the laggards of the week.

▼ The PSEi closed at 5,956.33 (-4.52% WoW). 

Local fixed income yields ended mixed but rose on average after the BSP’s widely expected 25-bp policy rate hike and revised inflation forecasts of 6.1% for 2026 (from 6.4%) and 5.4% for 2027 (from 4.5%). 

▲ On average, yields rose by 1 bp, with the 2Y closing at 6.33% (0 bps) and the 10Y closing at 7.26% (-5 bps).

The Philippine peso weakened to a fresh record low after the country’s trade deficit widened in July and global oil prices rose amid news of US economic sanctions on Iran. This was also ahead of Fed Chair Warsh's speech at the Jackson Hole Symposium.

▲ The USD/PHP pair closed at 62.27 (+0.96% WoW).

US equities rose, led by technology shares, after Nvidia beat earnings expectations and provided an optimistic revenue outlook. Investors also weighed the July US core Personal Consumption Expenditures (PCE) inflation of 3.3% YoY in July, which matched market’s expectations.

▲ S&P 500 closed at 7,711.76 (+0.49% WoW).

▲ DJIA closed at 53,559.99 (+0.53% WoW).

US Treasury yields were mixed but rose on average as investors digested Fed Chair Kevin Warsh's hawkish remarks at the Jackson Hole Symposium, saying that the Fed has "work to do" to bring inflation under control. This was also after the US Treasury Department said that it could tap its General Account to fund its expanded bond buyback program, easing yields on the long end.​

▲ On average, yields rose by 3 bps, with the 2Y closing at 4.35% (+11 bps) and the 10Y closing at 4.72% (-1 bp).​

The US dollar strengthened as hawkish remarks from Fed Chair Warsh at the Jackson Hole Symposium and rising Middle East tensions throughout the week lifted Fed rate hike bets.

▲ The DXY closed at 99.70 (+0.91% 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.