The Weekly Review

Local equities rose amid investors’ continued bargain-hunting throughout the week. Investors also digested the steady local inflation print in January and expectations of a rate cut from the Bangko Sentral ng Pilipinas (BSP) later this week. 

Top performers were Alliance Global Group, Inc. (PSE Ticker: AGI; +22.83%), San Miguel Corp. (SMC; +22.70%), and Bloomberry Resorts Corp. (BLOOM; +14.58%). Meanwhile, AREIT Inc. (PSE Ticker: AREIT; -5.83%), China Banking Corp. (CBC; -6.13%), and Emperador, Inc. (EMI; -10.72%) were the laggards of the week.

▲ The PSEi closed at 6,154.99 (+4.99% WoW). 

Local fixed income yields fell following comments by Governor Remolona that the BSP could cut rates by 50 bps this year. This was also amid strong demand for the Bureau of the Treasury’s reissued seven-year bonds.

▼ On average, yields fell by 8 bps, with the 2Y closing at 5.78% (-1 bp) and the 10Y closing at 6.12% (-11 bps).

The Philippine peso strengthened after the January local inflation print remained steady at 2.9% and US President Trump agreed to pause tariffs on Mexico and Canada.

▼ The USD/PHP pair closed at 58.03 (-0.57% WoW).

US equities declined as investors weighed Trump’s 10% tariffs on China and his remarks about potential reciprocal tariffs on multiple countries later this week. 

▼ S&P 500 closed at 6,025.99 (-0.24% WoW). 

▼ DJIA closed at 44,303.40 (-0.54% WoW).

US Treasury yields ended mixed amid remarks from several US Fed officials expressing their concerns over the potential impact of Trump's policies on inflation. Investors also digested a slew of mixed US economic data releases, such as the weaker-than-expected job openings and nonfarm payrolls data, as well as the stronger-than-anticipated US manufacturing activity data.

▼ On average, yields fell by 1 bp, with the 2Y closing at 4.29% (+9 bps) and the 10Y closing at 4.50% (-5 bps).

The US dollar slightly weakened following the lower-than-expected US ISM services purchasing managers’ index in January. This was also amid cautious trading driven by developments on Trump’s tariff policies, including a one-month delay on tariffs for Canada and Mexico. 

▼ The DXY closed at 108.04 (-0.30% 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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