The Weekly Review

Local equities fell as renewed US-Iran hostilities pushed global oil prices higher, while the Fed's 25-bp rate hike weighed on risk sentiment. Furthermore, the local bourse experienced increased selling pressure toward the end of the week during the FTSE rebalancing.

Top performers were ACEN Corp. (PSE Ticker: ACEN; +10.81%), Ayala Corp. (AC; +5.63%), and Emperador Inc. (EMI; +3.69%). Meanwhile, Monde Nissin Corp. (PSE Ticker: MONDE; -7.24%), Maynilad Water Services, Inc. (MYNLD; -8.04%), and International Container Terminal Services, Inc. (ICT; -8.12%) were the laggards of the week.

▼ The PSEi closed at 5,855.91 (-3.40% WoW). 

Local fixed income yields rose as elevated oil prices amid escalating Middle East tensions, coupled with the Fed's 25-bp rate hike, reinforced inflation and monetary policy concerns. 

▲ On average, yields rose by 14 bps, with the 2Y closing at 6.64% (+9 bps) and the 10Y closing at 7.58% (+14 bps).

The Philippine peso weakened as the US dollar strengthened following the Fed’s decision to hike rates, while persistently elevated oil prices above $100 per barrel heightened inflation concerns and weighed on sentiment. 

▲ The USD/PHP pair closed at 62.75 (+0.11% WoW).

US equities declined after the US Federal Reserve unanimously voted to raise its benchmark rate by 25 bps to the 3.75%-4.00% range and penciled in at least one more 25-bp hike by year end. Additionally, tech and AI-related stocks came under pressure following warnings from the leaders of Anthropic, OpenAI, and xAI about the safety risks associated with the rapid advancement of AI capabilities.

▼ S&P 500 closed at 7,650.50 (-0.08% WoW).

▼ DJIA closed at 51,682.64 (-1.69% WoW). 

US Treasury yields climbed after the Fed raised its key policy rate by 25 bps to 3.75-4.00% in its September meeting, and signaled the possibility of further tightening this year. Investors also monitored escalating Middle East tensions, which kept oil prices elevated above the $100 per barrel mark.​

▲ On average, yields rose by 5 bps, with the 2Y closing at 4.75% (+12 bps) and the 10Y closing at 5.00% (+3 bps).​

The US dollar strengthened as escalating Middle East tensions boosted safe-haven demand, while the Fed’s hawkish 25-bp rate hike reinforced the higher-for-longer rate outlook. 

▲ The DXY closed at 100.22 (+1.11% 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.