Weekly Equities Summary and Outlook : April 16 – 20, 2018

Weekly-Equities-and-Economic-Outlook
Equities Summary and Outlook Market Outlook. We expect the PSEi to hover between 7,400-7,700 amidst weak sentiment over the country’s accelerating inflation, overheating risks, and rising US bond yields ahead of Q1 earnings results. Last Friday, BDO announced its Q1 2018’s core earnings (+16% y-o-y, underperformed), while CHP and MER will disclose their Q1 results on April 27 and April... Read More

Weekly Equities Summary and Outlook : April 09 – 13, 2018

Weekly-Equities-and-Economic-Outlook
Equities Summary and Outlook Market Outlook. We expect the market to continue trading lower amidst overheating concerns by the World Bank (WB). But University of Asia and the Pacific Economist Dr. Victor Abola noted that the country’s current account deficit to GDP ratio is far from crisis threshold of 5% equal to $15.67bn. Market Review. Last week, the market bucked... Read More

Weekly Equities Summary and Outlook : April 02 -06, 2018

Weekly-Equities-and-Economic-Outlook
Equities Summary and Outlook Market Outlook. We expect the PSEi to consolidate between 7,900-8,000 due to lack of catalyst. Despite strong macroeconomic fundamentals, the spectre of accelerating inflation, widening trade deficit, and weak PHP will continue to weigh on the market. Market Review. The PSEi traded sideways since yesterday to end today at 7,943.9. Last week, the bellwether moved in... Read More

Weekly Fixed Income Summary : April 02 – 06, 2018

Weekly-Fixed-Income-Summary-and-Outlook
Rising Yield Curve Outlook. Bond yields will remain elevated amid (1) rising expectations of a hike by the Bangko Sentral ng Pilipinas (BSP); (2) steadily rising local inflation (up 4.3% in March, based on 2012 index); (3) allayed trade war fears by Chinese President Xi Jinping, shifting money out of safe haven assets like US Treasuries; and (4) Fed hike... Read More

Weekly Fixed Income Summary : March 26 – 28, 2018

Weekly-Fixed-Income-Summary-and-Outlook
Inflation, TRAIN-2 Put Upward Pressure on Yields Outlook. We expect upward pressure on bond yields to persist, especially given (1) Bangko Sentral’s (BSP) recent release of its March inflation expectation of 3.8%-4.6% (based on 2012 index), markedly higher than February’s 3.9%; and (2) news that the Lower House’s version of the second tax reform package is revenue-eroding, at least for... Read More

Weekly Equities Summary and Outlook : March 26 – 28, 2018

Weekly-Equities-and-Economic-Outlook
Equities Summary and Outlook Market Outlook. We expect the market to trade sideways to lower should the March inflation reading on Thursday proved upward to the consensus estimate of 4.7%, higher than 4.5% in February and the central bank’s estimate of 3.8% to 4.6%. Market Review. The market traded flat, up by +0.1% to 7,979, following most regional markets (see... Read More

Weekly Equities Summary and Outlook : March 19 – 23, 2018

Weekly-Equities-and-Economic-Outlook
EQUITIES OUTLOOK Market Outlook. We expect PSEi to trade between 7,800-8,000 as worries that the US-China tariff threats could lead to a full-blown trade war weigh on the market in the near-term. Drivers. Domestic catalyst will likely surface in the second week of May when the gov’t releases the Q1 2018 GDP results, which we expect to be strong given... Read More

Weekly Fixed Income Summary : March 19 – 23, 2018

Weekly-Fixed-Income-Summary-and-Outlook
Markets Still Expect BSP Hike Outlook. We expect bond trading to be sidelined amid the shortened work-week. The Bangko Sentral ng Pilipinas (BSP) decided to stand pat last week, as expected, but programmed borrowing in the second quarter is expected to grow by 35% quarter-on-quarter (QoQ) to Php325bn ($6.2bn), pressuring up interest rates. The debt auctions will also be more... Read More

Weekly Fixed Income Summary : March 12 – 16, 2018

Weekly-Fixed-Income-Summary-and-Outlook
Firm US CPI Abate Fears of Aggressive Fed Hike Outlook. The bond market will keep its eyes on the Bangko Sentral’s monetary board meeting this Thursday (March 22) and the Fed’s meeting this Wednesday-Thursday. While while several officials from the BSP have insisted that inflation is still manageable and the policy rate is still appropriate, there are some analysts who... Read More

Weekly Equities Summary and Outlook : March 12- 16, 2018

Weekly-Equities-and-Economic-Outlook
EQUITIES OUTLOOK Market Outlook. We expect the market to trade lower as investors remain on a sell down position ahead of the Bangko Sentral ng Pilipinas (BSP) and US Federal reserve policy meetings. The Federal Open Market Committee (FOMC) will discuss its monetary policy today and tomorrow while the BSP Monetary Board will hold its meeting on Thursday, March 22.... Read More