The Weekly Review

Local equities declined as the Philippines’ Gross Domestic Product (GDP) growth print came in lower than the 5.9% market expectation at 5.7% in 1Q24. ​

Top performers were Wilcon Depot Inc (PSE Ticker: WLCON; +10.54%), ACEN Corp. (ACEN; +9.73%), and Universal Robina Corp (URC; +8.91%). Meanwhile, Century Pacific Food Inc. (PSE Ticker: CNPF; -4.31%), BDO Unibank Inc. (BDO; -6.41%), and SM Investments Corp. (SM; -6.58%) were the laggards of the week.

▼ The PSEi closed at 6,511.93 (-1.57% WoW). 

Local fixed income yields fell after the local inflation print came in slower-than-expected at 3.8% (consensus: 4.1%) in April. This was also following the higher-than-expected US jobless claims data which rekindled hopes of a US Fed rate cut.

▼ On average, yields fell by 10 bps, with the 2Y closing at 6.43% (-10 bps) and the 10Y closing at 6.85% (-14 bps).

The Philippine peso weakened as investors weighed the weaker-than-expected local GDP print as well as hawkish remarks from several US Fed officials. 

▲ The USD/PHP pair closed at 57.42 (+0.13% WoW).

US equities rose after the higher-than-anticipated US weekly jobless claims data at 231,000 (for the week ending May 4) supported hopes of a potential rate cut from the Fed this year.

▲ S&P 500 closed at 5,222.68 (+1.85% WoW).

▲ DJIA closed at 39,512.84 (+2.16% WoW). 

US Treasury yields were mixed as investors weighed the higher-than-expected US weekly jobless claims data as well as hawkish remarks from Richmond Fed President Barkin and Boston Fed President Collin who both stated that the Fed’s current interest rate policy will likely be maintained until they gain greater confidence on the sustained downtrend of inflation. 

➖ On average, yields rose by 0 bps, with the 2Y closing at 4.87% (+5 bps) and the 10Y closing at 4.5% (-1 bp).

The US dollar strengthened as hawkish comments from Federal Reserve officials overshadowed the lower-than-expected nonfarm payrolls and higher-than-expected jobless claims data.

▲ The DXY closed at 105.30 (+0.26% 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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