News Briefs
December 3, 2020
Local Key Events
  • The Bureau of the Treasury will launch a dollar bond issuance aimed to raise funds that will be used to support the Philippine economy impacted by the COVID-19 pandemic and the recent typhoons. The offering will consist of 10.5-year and 20-year US Dollar-denominated bonds with a carry yield of around 100 basis points above the 10-year US Treasury benchmark.
  • Globe Telecom, Inc. (PSE Ticker: GLO) built 911 new cell sites in 2H20, and expects to finish 600 more before year-end.  This statement was released as Palace called for telcos to improve services. Likewise, PLDT Inc (PSE Ticker: TEL) committed to rolling out 2,000 additional cell sites in 2021.
Local Indices
  • Local equities rose, tracking gains in the US, on hopes of the passage of the US fiscal stimulus package. A bipartisan group of lawmakers proposed a $908 billion stimulus program. The PSEi closed at 7,080.62 (+1.01% DoD)
  • Local fixed income yields were mixed ahead of the inflation data release. Currently, consensus expectations is 2.6% while the BSP is forecasting 2.4-3.2%. The market movement was also driven by the Bureau of the Treasury’s reissued three-year bonds yesterday. On average, yields rose 0.53 bps DoD as the long-end and the belly increased by 1.40 bps and 0.58 bps DoD, respectively. Meanwhile, the short-end fell 0.18 bps DoD.

  • The Philippine peso was flat as investors awaited for further market developments after President-elect Joe Biden asked the US Congress to pass the stalled COVID-19 stimulus package. The USD/PHP pair closed at 48.05 (0.00%). 

US and Europe Indices
  • US equities gained as investors focused on the new rounds of talks for the stimulus package . The DJIA closed at 29,883.79 (+0.20% DoD) while the S&P 500 closed at 3,669.01 (+0.18% DoD).
  • European equities slightly rose on the back of positive sentiment following the better-than-expected economic data from Germany. The German retail sales rose 2.2% month-on-month in October, better than the -2.2% reported last September. This is also higher than the consensus expectations of 1.2%. The MSCI Europe closed at 129.98  (+0.02% DoD).
  • US Treasury yields were mixed but rose on average as market participants hoped for the fresh stimulus package from the US government . On average, US Treasury yields rose by 0.26 , with the 2Y ending at 0.1584% (-0.78 bps) and the 10Y closing at 0.9360% (+1.00 bp).
  • The U.S. Dollar continued to weaken amid optimism for a potential US stimulus package and vaccine progress. The DXY closed at 91.1180 (-0.214%).
Asia Pacific Indices
  • Asian equities rose following the gains in the US markets overnight due to investors’ optimism from the $908 billion fiscal stimulus plan in the US. The MSCI APxJ closed at 631.10 (+0.27% 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