THE MORNING VIEW

THE MORNING VIEW


News Briefs
July 3, 2020
 
Local Key Events
  • Preliminary data from the Department of Finance showed that BOC collections totalled Php270.77 bn in June, a 28% YoY growth from the Php211.5 bn logged last year. The government agency attributed the increase to higher collection efforts across all ports and gradual recovery in import volume.
  • AC Energy, the power arm of Ayala Corp., (PSE Ticker: AC), will increase its existing senior green bonds offering by $60 mn. The funds will be used for green energy projects, and the company hopes to expand its renewable energy capacity to 5,000 megawatts by 2025. The Ayala-led subsidiary currently has $360mn in 5-year bonds, and $110mn in 10-year bonds. The additional bonds will be listed in the Singapore Exchange Securities Trading.
Local Indices
  • Local equities gained amid positive sentiment over the country's wider Balance of Payments surplus in May and reported recovery in the local manufacturing Purchasing Managers' Index data. The PSEi closed at 6,364.08 (+2.49% DoD).
  • Local fixed income yields fell following recovery in local manufacturing data. Meanwhile, the short-end and belly declined -3.77 bps and -0.82 bps, respectively.
  • The Philippine peso strengthened amid the country's wider Balance of Payments surplus in May and dovish signals from the US Federal Reserve. The USD/PHP pair finished at 49.730 (-0.18% DoD). 
US and Europe Indices
  • US equities slightly rose on the back of stronger-than-expected monthly employment report for June. The US added 4.8 million jobs in June, resulting in the decline in unemployment rate from 13.3% in May to 11.1% in June. The DJIA closed at 25,827.36 (+0.36% DoD) and the S&P 500 ended at 3,130.01 (+0.45% DoD).
  • European stocks inched up driven by positive momentum coming from the US as they regained 4.8 million jobs in June.  The MSCI Europe closed at 122.54 (+1.96% DoD).
  • US Treasury yields marginally fell despite the strong jobs report in the US as bond investors continued to remain cautious due to the increasing COVID-19 cases in the country. On average yields fell by 30 bps DoD. The 10Y US Treasury yield came in at 0.6693% (-0.65 bps DoD), while the 2Y US Treasury yield came in at 0.1526% (-0.77 bps DoD).
  • The US Dollar rose on the back of upbeat US employment report for June. The US Dollar closed at 97.32 (+0.12%).
Asia Pacific Index
  • Asian equities went up on the back of upbeat economic data releases in the US and the positive trial results of the potential COVID-19 vaccine being developed by Pfizer and BioNTech. The MSCI APxJ closed at 527.19 (+2.29% DoD).
Sources: BPI, Business World, PDI, Phil Star, Manila Bulletin, Reuters, Briefing, Bloomberg, CNN, Dow Jones, The Wall Street Journal, CNBC , Market Watch
 

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