Weekly Equities Summary and Outlook : November 12 – November 16, 2018

Weekly-Equities-and-Economic-Outlook
Equities Outlook Outlook. PSEi may test the next resistance of 7,400 as market digests Monetary Board’s (MB) 25-bp rate hike last week, seen as a proactive stance to temper risk to inflation outlook, and the Bangko Sentral ng Pilipinas’ (BSP) downward adjustment of inflation forecast to within the target range of 2-4% for 2019. Other favorable news are the de-escalation... Read More

Weekly Equities Summary and Outlook : November 5 – November 9, 2018

Weekly-Equities-and-Economic-Outlook
Equities Outlook Outlook. PSEi will stay trapped within 6,900-7,000. Two reasons: (1) We bet BSP will raise rate by another 25 bps this week due to elevated inflation; October print was 6.7%, (albeit a deceleration on a month-on-month, m/m, to 0.3% from August-September’s 0.9%). (2) Disappointing corporate earnings in nine months of the year (9M18), up 5.5% vs full year... Read More

Weekly Equities Summary and Outlook : October 29 – November 2, 2018

Weekly-Equities-and-Economic-Outlook
Equities Outlook Outlook. The PSEi may test 7,300-7,400 amid expectation of favorable October inflation (November 6, estimate steady at 6.7%), third quarter GDP print (November 8, estimate at 6.3% from 6% in the second quarter) and amid reporting of corporate earnings this week led by index stocks ALI and GLO on November 6; MPI, ICT, SM, AEV, and AP on... Read More

Weekly Equities Summary and Outlook : October 22 – October 26, 2018

Weekly-Equities-and-Economic-Outlook
Equities Outlook Outlook. We expect the PSEi to continue to be range bound as investors await the release of October inflation print on Nov. 6 and the third quarter GDP on Nov. 8. Latest earnings results were mixed (YTD) — MER (reported +14% to P18.2bn; core +9% to P16.7bn) slightly outperformed, while BDO (reported +6% to P21.5bn; core +13%), URC... Read More

Weekly Equities Summary and Outlook : October 15 – October 19, 2018

Weekly-Equities-and-Economic-Outlook
Equities Outlook Outlook. The PSEi may attempt to break the resistance level of 7,300 on weak volume as investors await the third quarter corporate earnings season that started this week with the release of SMPH’s results today (in-line with consensus) and CHP and PX’s on Friday (Oct. 26). Thus, market’s upward trajectory may not be sustained and may likely trade... Read More

Weekly Equities Summary and Outlook : October 8 – October 12, 2018

Weekly-Equities-and-Economic-Outlook
Equities Outlook Outlook. The PSEi may hover between 6,800-7,000 as rising domestic inflation and interest rates and global uncertainty about trade, rising US interest rates and escalating tension between US and Saudi Arabia over the fate of Saudi journalist Jamal Khashoggi that could potentially lead to speculative spike in oil prices continue to dampen sentiment. China’s central bank governor Yi... Read More

Weekly Equities Summary and Outlook : October 1 – October 5, 2018

Weekly-Equities-and-Economic-Outlook
Equities Outlook Outlook. The PSEi may test the 7,000 support level amidst persistent negative sentiment arising from accelerating domestic inflation, sustained PHP weakness, rising interest rates and unabated net foreign outflows now on its 28th consecutive trading days. Key economic data to be released this week is the August’s balance of trade (Oct. 10) which is anticipated to hit a... Read More

Weekly Equities Summary and Outlook : September 24 – September 28, 2018

Weekly-Equities-and-Economic-Outlook
Equities Outlook Outlook. We expect the PSEi to sustain its weakness this week as the market awaits the September inflation print to be released on Friday (Oct. 5) which is anticipated to reach as high as 7.1% y/y, coupled with lingering external headwinds from trade concerns. On a positive note, US and Canada’s last minute deal to salvage the trilateral... Read More

Weekly Equities Summary and Outlook : September 17 – September 21, 2018

Weekly-Equities-and-Economic-Outlook
Equities Summary and Outlook Outlook. We expect the PSEi on a downward bias due to run-away inflation worries. Despite the expected 50bps rate hike of the Bangko Sentral ng Pilipinas’ (BSP) on Thursday, the market may not do a relief rally back to near-term high of 7,500 given emerging consensus forecasts of 7%-7.4%. It implies inflation is yet to peak.... Read More

Weekly Equities Summary and Outlook : September 10 – September 14, 2018

Weekly-Equities-and-Economic-Outlook
Equities Outlook Outlook. We expect the PSEi to continue its downward bias as global trade tension re-emerged after Pres. Trump approved new tariffs worth $200bn of Chinese exports and threatened tariffs on $267bn more Chinese goods. On the domestic front, investors will await the Monetary Board (MB) meeting on Sept. 27 which is expected to raise policy rates by another... Read More