Strong Government Borrowing Appetite [February 4- February 8, 2019]

Weekly-Fixed-Income-Summary-and-Outlook
The Bulls Are Back Outlook. Last week, the market bought on better-than-expected inflation news but was wary on a rumored possible retail treasury bond (RTB) issuance. We expect the market to remain cautious of this, causing the yield curve to be rangebound on heightened risk aversion anew to long duration and a preference for the safety of the short but... Read More

Weekly Equities Summary and Outlook : February 4 – February 08, 2019

Weekly-Equities-and-Economic-Outlook
Equities Outlook Outlook. The market may consolidate between 8,000-8,100 this week in the absence of progress in the US-China trade talk (especially on intellectual property). The trade truce will end on March 1. The market will also take its cue from earnings results this week from GLO (February 12) and ALI (February 15). So far, earnings results (for full year... Read More

Weekly Equities Summary and Outlook : January 28 – February 01, 2019

Weekly-Equities-and-Economic-Outlook
Equities Outlook Outlook. PSEi’s ascent is pricing in already the potential rate cuts (policy rate and reserve ratio) whose odds rose with the inflation deceleration. PSEi’s rally is in sync with the emerging market (EM) wide rally as it price in a likely trade deal between the US and China by month-end. The PSEi may trade between 8,000-8,300 this week... Read More

FAMI Offers Short-term Investment Option

FAMI offers short-term investment option First Metro Asset Management, Inc. (FAMI), the fund management subsidiary of First Metro Investment Corporation, has launched its newest mutual fund, the First Metro Save & Learn Money Market Fund (SALMMF), giving investors an opportunity to earn more from a short-term investment. FAMI president Karen Liza Roa said, “FAMI understands that a well-diversified, investment plan... Read More

Weekly Fixed Income Summary : January 21 – January 25, 2019

Weekly-Fixed-Income-Summary-and-Outlook
Global Slowdown Outlook. The Fed will meet this Wednesday, January 30 (PH time, Thursday, January 31) and is expected to stand pat (Fed futures prices imply 100% odds of a no hike) amid growing concerns of slower global growth outlook. This sentiment was echoed by the European Central Bank (ECB), saying that downside risks may necessitate significant stimulus. The latest... Read More

Weekly Equities Summary and Outlook : January 21 – January 25, 2019

Weekly-Equities-and-Economic-Outlook
Equities Outlook Outlook. The PSEi may trade cautiously this week between 7,900-8,100 as investors await the high-level trade talks between US and China later this week and amid renewed fears of US slowdown following disappointing earnings results. On the domestic front, investors will await the January inflation print which will be released next week and the start of the earnings... Read More

Weekly Fixed Income Summary : January 14 – January 18, 2019

Weekly-Fixed-Income-Summary-and-Outlook
Bulls Hunt For Yields Outlook. Yields continued to drop amid strong demand that ate up the influx of fresh supply. Local investors are locking in and chasing yields at the possibility of further interest rate drops. In a BSP survey conducted recently, analysts and economists expect inflation to decelerate to 4.1%, lower than the previous estimate of 4.3% but higher... Read More

Weekly Equities Summary and Outlook : January 14 – January 18, 2019

Weekly-Equities-and-Economic-Outlook
Equities Outlook Outlook. The PSEi may trade between 7,900-8,100 this week amid improving domestic macroeconomic picture and optimism over US-China trade negotiations after China is said to offer to ramp up imports from the US by more than $1trn over the next six years to reduce its trade surplus. However, China’s slower GDP growth in 2018 at 6.6% (albeit within... Read More