THE MORNING VIEW

THE MORNING VIEW


News Briefs
October 16, 2018

Local Key Events
  • Megaworld Corporation (PSE Ticker: MEG) is building its 4th residential condominium in Uptown Bonifacio township in the northern part of Fort Bonifacio near Kalayaan Avenue. The tower is expected to be completed in 2024, and is expected to generate Php10 Bn in sales.
     
  • Bangko Sentral ng Pilipinas (BSP) reported that the personal remittances from Overseas Filipinos in the first eight months of 2018 totaled USD21.2 Bn, up 2.4% year-on-year. Personal remittances from sea-based workers and land-based workers with short-term contracts expanded by 3.8% to USD4.4 Bn.
Local Indices
  • The local equities market fell, similar to most Asian indices. This was mainly brought by the anticipated negatve impacts of the US-China trade war to China's economy, and continued net foreign selling of the PSEi. This brought the PSEi to 6,926.51 (-1.12% DoD).
     
  • Local fixed income yields were flat on average, though the curve steepend significantly, with the long end rising 23.99 bps and the short end falling 15.02 bps. Investors continue to position for additional rate hikes, favoring shorter duration, especially after the OFW remittance data was behind expectations. On average, yields rose 0.20 bps.
     
  • The Philippine peso was relatively flat, showng only mild appreciation amid net foreign selling in the equity market and a disappointing remittance print. The USD/PHP pair closed at 54.080 (-0.09% DoD).
US and Europe Indices
  • US stocks resumed their decline as tensions between US and Saudi Arabia over a missing journalist intensified. Weaker-than-expected retail sales for September added to risk aversion. The DJIA and the S&P 500 closed at 25,250.55 (-0.35% DoD) and 2,750.79 (-0.59% DoD) respectively.
     
  • European equities eked out small gains as the market stabilized after last week's rout. Investors are also watching Brexit developments as the UK and EU failed to reach a compromise over the weekend. The MSCI Europe closed at 121.23 (+0.17% DoD).
     
  • US Treasury yields rose on average led by the short-end of the curve after the release of macroeconomic data and as equities stabilized. On average, yields rose 0.40bps, with the benchmark 10-year's yield down 0.56 bps to 3.1557%.
     
  • The US dollar slightly weakened as the US budget deficit swelled to the largest amount since 2012 and as retail sales are softer than expected. The DXY was down 0.17% DoD, closing at 95.059.
Asia Pacific Index
  • Asian equities were down once again, tracking movements of US peers. Both defensive and cyclical stocks remain challenged due to higher yields and slowing economic growth respectively. The The MSCI APxJ lost 1.11% DoD, closing at 479.51.
Sources: BPI, Business World, PDI, Phil Star, Manila Bulletin, Reuters, Briefing, Bloomberg, CNN, Dow Jones, The Wall Street Journal, CNBC
 

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