Weekly Equities Summary and Outlook : April 29 – May 3, 2019

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Equities Outlook Outlook. Expect some profit taking on rally this week which may bring the PSE to 7,800-7,900. Philippine April inflation came in at 3.0%, lower than the median forecast of 3.1%. We believe that despite the easing inflation, this will be offset by weakness in 1Q19 Philippine GDP and heightened volatility brought by Trump’s tough stance on tariff against... Read More

The Market Call | April 2019

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Macroeconomy Elevated NG spending on infrastructure projects, coupled with the spill-over effects of the election should keep growth momentum in Q1 steady. Moreover, the downtrend in inflation print augurs well for higher consumer spending and leads us to expect cuts in reserve ratio requirement (RRR) in Q2. The peso’s recent gains should prove temporary given the huge trade imbalance and... Read More

Weekly Equities Summary and Outlook : April 22 – April 26, 2019

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Equities Outlook Outlook. Standard & Poor’s (S&P) raised the Philippines sovereign credit rating from BBB to BBB+ with stable outlook. Thus, PSEi may rally and easily break above 8,000 on account of the credit rating. The market will also take its cue from the April inflation print and earnings results this week from Metro Pacific Investment Corp., Integrated Micro-Electronics, Inc.,... Read More

Weekly Fixed Income Summary : April 15 – April 19, 2019

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Yields Rise Ahead of Panda Bonds Outlook. The market is anticipating the issuance of $200-$500mn panda bonds towards the end of this month, which explains the slight uptick in yields last week. Recall that $230mn worth of panda bonds were also issued in March last year. The government is looking at tenors of three to five years as yields followed... Read More

Weekly Equities Summary and Outlook : April 15 – April 17, 2019

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Equities Outlook Outlook. The PSE Index is expected to trade at the tighter 7,800 – 7,900 range, with downward bias, in the absence of catalysts to support the index in the near term, locally. We expect some selling pressure as the market turn cautious on the 1Q19 GDP results scheduled in May. Despite the lower inflation in the first quarter... Read More

Weekly Equities Summary and Outlook : April 8 – April 12, 2019

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Equities Outlook Outlook. We expect the PSEi to consolidate within the 7,800 – 8,000 range after the index failed to hold above 8,000 due to the 2019 government budget impasse, global growth slowdown reflected in the recent cuts by the IMF and ADB for the global growth outlook and the Philippines to 6.4% from 6.5% for the former and 6.4%... Read More

Yield Curve Inversion [April 1 – April 5, 2019]

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Yield Curve Inversion Outlook. The local yield curve remained slightly inverted at the 1-yr against the 10-yr as the government borrowed at even higher rates than secondary market rates. The rate downtrend to 5.6% proved shortlived and unsustainable as the rally was sold down on the view it won’t take long for government’s strong cash needs to resurface despite an... Read More

Weekly Equities Summary and Outlook : April 1 – April 5, 2019

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Equities Outlook Outlook. We’re expecting the market to rebound this week and trade at the higher 7,900-8,100 range, encouraged by falling inflation affirmed by the lower-than-expected inflation print of 3.3% in March. The BSP stands ready to ease monetary policy amid a backdrop of challenging global economic outlook. Concerns of rising oil prices brought by conflict in Libya is offset... Read More