THE MORNING VIEW

THE MORNING VIEW


News Briefs
September 18, 2020
 
Local Key Events
  • Data from the Philippine Statistics Authority (PSA) showed that the total gross revenue index, which measures sales earned by Philippine companies, declined 26.8% in 2Q2020. This was the steepest decline recorded as lockdown restrictions amid the pandemic disrupted business operations. 
  • SM Investments Corp. (PSE Ticker: SM) got the approval of the Securities and Exchange Commission for the shelf-registration of its Php30 billion bonds program. The company will initially offer fixed-rate bonds in the aggregate principal amount of Php5 bn, with an oversubscription option of up to Php5 bn. The offer is estimated to have net proceeds of Php9.89 bn which the company will use to refinance its existing debts.
Local Indices
  • Local equities were flat as the market digested the decision of the Fed to keep its rates low until 2023. Day activities were met with tepid trading and minimal volatility after the policy statement. The PSEi closed at 5,943.52 (-0.05% DoD).
  • Local fixed income yields were mixed but mildly went up after the Federal Reserve’s decision to maintain its dovish stance and as the market continued to anticipate new and upcoming bond issuances from the Bureau of the Treasury. On average, yields rose 0.19 bps DoD, led by the long-end which increased by 1.00 bps DoD.
  • The Philippine peso weakened following the decision of the Federal Reserve to keep their policy rate near zero. The USD/PHP pair finished at 48.510 (+0.26% DoD). 
US and Europe Indices
  • US equities declined amid continued sell-off in tech shares. Facebook was down 3.3% and Amazon lost 2.3%, while Apple and Microsoft fell 1.6% and 1.0% respectively.  The DJIA closed at 27,901.98 (-0.47% DoD) while the S&P 500 closed at 3,357.01 (-0.84% DoD). 
  • European equities declined as both the Federal Reserve and the Bank of England left rates unchanged. The negative view of both central banks also drove down overall sentiment  The MSCI Europe closed at 122.97 (-0.55% DoD).
  • US Treasury yields declined following poor economic data from the US. The Philadelphia manufacturing in September fell to 15, following the 17.2 posted the month prior. On average, US Treasury yields declined by 0.80 bps DoD, with the 2Y ending at 0.1350% (-2.00 bps) and the 10Y closing at 0.6887% (-0.82 bps). 
  • The US dollar weakened, as the improvement of the US employment data boosted investor confidence a bit. The initial jobless claims for the week ended September 12 decreased to 860k from 884k reported last September 5. The DXY closed at 92.97 (-0.262% DoD).
Asia Pacific Indices
  • Asian equities dropped following the movement of the US equities amid negative sentiment over the view of the Fed on the slow economic recovery. The MSCI APxJ closed at 567.34 (-1.15% DoD).
Sources: BPI, Business World, PDI, Phil Star, Manila Bulletin, Reuters, Briefing, Bloomberg, CNN, Dow Jones, The Wall Street Journal, CNBC , Market Watch
 

This material, which is strictly for information purposes only, is for your sole use, does not constitute a recommendation or an offer to sell or a solicitation to buy any financial product. Any information is subject to change without notice and BPI is not under any obligation to update or keep current the information contained herein. You are advised to make your own independent judgment with respect to the matter contained in this document. No liability whatsoever is accepted for any loss that may arise (whether direct or consequential) from any use of the information contained herein.

All funds managed by BPI Asset Management and affiliates are Trust and/or Investment Management Funds, which do not carry any guarantee of income or principal, and are NOT covered by the Philippine Deposit Insurance Corporation. Past performance is not a guarantee of future results. BPI Investment Funds are valued daily using the marked-to-market method.

 
 
Print this page     Download PDF Share via Facebook