The Weekly Review

Local equities fell as market sentiment was dampened by the Philippine peso hitting new record lows and the Bangko Sentral ng Pilipinas (BSP) delivering a surprise 50-bp rate hike to 5.50%. Investors also weighed the prospect of further policy tightening.

Top performers were Aboitiz Equity Ventures Inc. (PSE Ticker: AEV; +3.21%), Ayala Land Inc. (ALI; +2.08%), and Metropolitan Bank & Trust (MBT; +1.99%). Meanwhile, Manila Electric Co. (PSE Ticker: MER; -6.48%), Century Pacific Food Inc. (CNPF; -7.61%), and RL Commercial REIT Inc. (RCR; -9.48%) were the laggards of the week.

▼  The PSEi closed at 5,728.63 (-0.94% WoW).

Local fixed income yields climbed after the BSP delivered a surprise 50-bp rate hike, raised its 2027 inflation forecast to 6.0% from previously 5.4%, and signaled further tightening ahead. Investors also weighed rising oil prices amid escalating Middle East tensions.

▲ On average, yields rose by 5 bps, with the 2Y closing at 7.19% (+13 bps) and the 10Y closing at 8.05% (+4 bps).

The Philippine peso weakened to a new all-time low for five straight trading days last week, as heightened geopolitical tensions and higher oil prices overshadowed the BSP’s jumbo rate hike.

▲ The USD/PHP pair closed at 63.62 (+1.00% WoW).

US equities closed mixed as investors assessed a slew of 3Q26 earnings results and sought opportunities outside tech amid renewed concerns over the sustainability of AI spending. Sentiment was pressured by Meta’s first cash outflow in over a decade and plans to raise capital for AI investments, while global oil prices continued to rise on escalating tensions between Iran-backed Houthis and Saudi Arabia.

▼ S&P 500 closed at 7,623.68 (-0.47% WoW).

▲ DJIA closed at 52,215.16 (+0.41% WoW).

US Treasury yields fell as investors sought for safe-haven assets after the stock market sell-off and digested weaker-than-expected US pending home sales (Sep.: -7.3% MoM; Consensus: -0.5%) and housing starts (Sep.: -5.2% MoM; Consensus: +1.9%). However, the decline in yields were tempered by the surge in global oil prices.

▼ On average, yields fell by 5 bps, with the 2Y closing at 4.69% (-2 bps) and the 10Y closing at 5% (-8 bps).

The US dollar closed flat on cautious trading as investors digested geopolitical developments, including reported talks between Iran and Pakistan as well as speculation about renewed military attacks on Iran after elections in the US and Israel.

▼ The DXY closed at 101.81 (-0.03% 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.