The Weekly Review

Local equities fell amid the lingering uncertainty over the US-Iran conflict. Markets were closed on Friday in celebration of the Philippines’ Independence day.

Top performers were International Container Terminal Services, Inc. (PSE Ticker: ICT; +5.03%), Manila Electric Company (MER; +3.24%), and Globe Telecom, Inc. (GLO; +1.19%). Meanwhile, Universal Robina Corp. (PSE Ticker: URC; -6.52%), JG Summit Holdings Inc. (JGS; -8.46%), and Ayala Land Inc. (ALI; -10.03%) were the laggards.

▼ The PSEi closed at 5,910.06 (-0.48% WoW). 

Local fixed income yields declined after global oil prices fell and the Philippine peso slightly strengthened following hopes of a US-Iran peace deal.

▼ On average, yields fell by 2 bps, with the 2Y closing at 6.77% (-5 bps) and the 10Y closing at 7.49% (-4 bps).

The Philippine peso slightly strengthened as global oil prices trended lower amid easing US, Israel, and Iran geopolitical tensions. The peso was also supported by the PH's March foreign direct investment net inflows data of $611 million, up by 26.1% YoY. ​

▼ The USD/PHP pair closed at 61.35 (-0.20% WoW).

US equities rose after traders weighed SpaceX's record-breaking initial public offering and the renewed optimism over a potential US-Iran peace deal, which sent oil prices lower.  Sentiment was also supported by Iran and Israel’s agreement to halt attacks following an appeal by US President Trump. 

▲ S&P 500 closed at 7,431.46 (+0.65% WoW).

▲ DJIA closed at 51,202.26 (+0.66% WoW). 

US Treasury yields fell on prospects of a US-Iran peace deal and declining oil prices. Investors also weighed May US headline inflation rising to a three-year high of 4.2% YoY (April: 3.8%) but within market expectations.

▼ On average, yields fell by 4 bps, with the 2Y closing at 4.08% (-7 bps) and the 10Y closing at 4.48% (-5 bps).

The US dollar weakened as investors focused on the developments surrounding the peace negotiations between the US and Iran.

▼ The DXY closed at 99.75 (-0.32% 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.