The Weekly Review

Local equities ended lower as sentiment remained dampened by mixed developments on the US-Iran ceasefire deal. Substantial net foreign outflows from the May MSCI rebalancing also weighed on the local stock market. ​

Top performers were ACEN Corp. (PSE Ticker: ACEN; +6.45%), Bank of the Philippine Islands (BPI; +6.28%), and LT Group, Inc. (LTG; +5.47%). Meanwhile, International Container Terminal Services, Inc. (PSE Ticker: ICT; -7.73%), Century Pacific Food, Inc. (CNPF; -9.97%), and DigiPlus Interactive Corp. (PLUS; -17.84%) were the laggards of the week.

▼ The PSEi closed at 5,768.76 (-3.23% WoW). 

Local fixed income yields fell as oil prices declined 11% week-on-week amid news that US and Iran began exchanging messages to extend the ceasefire and reopen the Strait of Hormuz, reducing inflation fears.

▼ On average, yields fell by 11 bps, with the 2Y closing at 6.8% (-13 bps) and the 10Y closing at 7.52% (-23 bps).

The Philippine peso slightly strengthened, supported by the decline in global oil prices as US-Iran negotiations showed signs of progress early in the week. 

▼ The USD/PHP pair closed at 61.59 (-0.16% WoW).​

US equities jumped to record highs, boosted by technology stocks after Dell Technologies reported a first-quarter beat on revenues and earnings. Investors also mulled headlines stating that US and Iran had reached a draft memorandum of agreement to extend their ceasefire for 60 days. 

▲ S&P 500 closed at 7,580.06 (+1.43% WoW). 

▲ DJIA closed at 51,032.46 (+0.90% WoW). 

US Treasury yields slipped following reports of the 60-day extension of the US-Iran ceasefire. Traders also weighed the US Personal Consumption Expenditures (PCE) inflation, which accelerated but was in line with expectations at 3.8% YoY in April (March: 3.5%).

▼ On average, yields fell by 7 bps, with the 2Y closing at 4.01% (-12 bps) and the 10Y closing at 4.44% (-12 bps).

The US dollar weakened as investors digested news that the US and Iran agreed to extend their ceasefire for 60 days. However, this was tempered by reports of fresh exchanges strikes between the two countries, violating the current ceasefire agreement. 

▼ The DXY closed at 98.94 (-0.30% 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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