The Market Call | January 2020

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Macroeconomy GDP growth accelerated to 6.4% in Q4, due to robust government and infrastructure spending and softer inflation. These same factors, along with a low base and positive employment print, should sustain faster growth in 2020. Robust residential and commercial building demand and the various Private-Public Partnership (PPP) projects should also further stoke investment demand. Inflation will likely stay within... Read More

The Market Call | December 2019

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Macroeconomy Recent economic indicators point to a stronger Q4 and on 2020, with positive employment print and poverty data indicating better investment numbers for the last quarter of 2019. Household consumption would still benefit from this, softer inflation (on average) and low interest rates. The National Government (NG) will continue to ramp up infrastructure spending amidst the still-large fiscal space.... Read More

Weekly Equities Summary and Outlook : September 2 – September 6, 2019

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Equities Outlook Outlook. Expect the market to consolidate this week to 7,700-8,000 level but with an upward bias as investors bet on fresh global stimulus amid weak economic data from China, US and EU. More support measures are expected from China after its exports surprisingly drop in August as shipments to the US sharply declined, while weakening jobs trend in... Read More

The Market Call | August 2019

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Macroeconomy The expected rebound in government spending, the improvement in external trade, and below-2% inflation by August should help boost economic performance in the last quarters of 2019. Moreover, we think that real economy and financial markets will be boosted by the anticipated cut in US and local policy rates. Fixed-Income Market The global economic slowdown and trade war impacted... Read More

Weekly Equities Summary and Outlook : August 27 – August 30, 2019

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Equities Outlook Outlook. We expect the market to correct this week between 7,700-7,900, after it rallied for three straight trading sessions last week and amid negative sentiment from the latest round of US-China trade tariffs which kicked in on September 1. The additional US tariffs have slapped Chinese goods worth $125bn with 15% duty, while another $175bn worth of goods... Read More

Weekly Fixed Income Summary : August 27 – August 30, 2019

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Less Than 2% August Inflation: Ten Years Headed Lower Outlook. Lower inflation rate guidance by the Bangko Sentral ng Pilipinas (BSP), 1.3-2.1% for last month, is not helping much to push down the ten year rate which continues to hover around 4.2%-4.4%. Some big banks are locking in profits, selling huge profitable positions and that’s keeping secondary rates steady and... Read More