Key events that transpired during the week
  • The Bangko Sentral ng Pilipinas maintained its policy rate of 6.25% in its latest Monetary Board meeting. However, the central bank said a rate hike is possible in November depending on inflation data. The BSP also raised its inflation forecasts to 5.8% (from 5.6%) for 2023 and 3.5% (from 3.3%) for 2024. The 2025 inflation forecast was unchanged at 3.4%.​
 
  • The US Federal Reserve kept its policy rate steady at a range of 5.25-5.50%, but projected one more hike before the year ends and signaled 2 cuts in 2024 (previously 4 cuts in June). Meanwhile, the Fed raised its US CDP growth forecasts to 2.1% in 2023 (June: 1%) and 1.5% in 2024 (June: 1.1%), bolstering hopes that the US economy can achieve a soft landing. 
 
  • Euro zone inflation slightly cooled to 5.2% YoY in August (July: 5.3%), while core inflation also eased to 5.2% YoY (July: 5.5%). The current level is still twice as high as the European Central bank's target of 2%. Services posted the highest contribution to inflation. 
Local indices
  • Local equities slightly rose amid bargain hunting and as investors weighed the BSP and the US Fed's decision to maintain key policy rates steady. However, fears of further rate hikes before the year ends tempered gains.  The PSEi closed at 6,142.79 (+0.27% WoW).
 
  • Top performers were Monde Nissin Corp (PSE Ticker: MONDE; 10.48%), SM Prime Holdings Inc (SMPH; 2.72%), and Ayala Land Inc (ALI; 2.58%). Meanwhile, GT Capital Holdings Inc (PSE Ticker: GTCAP; -2.95%), Wilcon Depot Inc (WLCON; -3.41%), and ACEN Corp (ACEN; -5.81%) were the laggards of the week.
 
  • Local fixed income yields were mixed but fell on average as investors reacted to the policy decisions of the Fed and the BSP. On average, yields fell by 2.19 bps, with the 2Y closing at 6.18% (-2.82 bps) and the 10Y closing at 6.48% (+3.1 bps).
 
  • The Philippine peso weakened after the BSP kept policy rates unchanged and raised its inflation forecasts. The USD/PHP pair closed at 56.795 (+0.04% WoW). 
US indices
  • US equities fell as investors weighed the US Fed's hawkish pause and latest economic projections. The potential US government shutdown also dragged down market sentiment. The S&P 500 closed at 4,320.06 (-2.93% WoW) and the DJIA closed at 33,963.84 (-1.89% WoW).

 

  • US treasury yields spiked as the Fed kept policy rates steady but signaled intention to implement another hike before the end of the year. On average, yields gained 7.41 bps WoW with the 10Y closing at 4.44% (+10.00 bps).
 
  • The US Dollar  strengthened as investors digested the lower-than-expected initial jobless claims and the Fed’s guidance of policy rates staying higher for longer. The DXY closed at 105.58 (+0.25% WoW). 
Downloadable file

Download The Weekly Review as of September 25, 2023.

The Weekly Review as of September 25, 2023

English

File-type

File-size

download-icon
The Weekly Review Archive
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.

Our investment solutions

Find the right products and services for you.