THE MORNING VIEW

THE MORNING VIEW


News Briefs
June 20, 2019
Local Key Events
  • Metro Pacific Investments Corp (PSEI ticker: MPI) expects its hospital unit to be valued at $2 billion as it sells a minority stake in the health care group. MPI plans to sell a portion of its 85.6% in Metro Pacific Hospital Holdings, Inc. later this year. The hospital group plans to expand its network to 5,000 beds in the coming years from the current 3,200 beds by acquiring smaller hospitals.
     
  • During the 5th Joint Economic Briefing yesterday, Gov. Diokno expressed the focused efforts of the Bangko Sentral ng Pilipinas (BSP) on improving FDI environment. Initiatives include ensuring price stability and implementing various foreign exchange liberalization reforms. Despite the decline of the FDI net inflows in 1Q due to the  trade war and local elections.
Local Indices
  • The local equities market rose mirroring the rally in the US as market investors await for the Fed meeting. The increase was led by holding firms which rose by 105.34 bps. Meanwhile, foreign investors turned into net sellers with a net outflow of P26.43 mn. The PSEi closed at 8,017.01 (+1.20% DoD)
     
  • Local fixed income yields continued to decline as the Fed signaled readiness to cut rates, taking a more dovish tone which might be followed by the BSP. On average, yields fell by 0.51 bps, led by the short and belly end of the curve.
     
  • The Philippine Peso strengthened yesterday, with the USD/PHP pair reaching Php 51.890 (-0.19% DoD) amidst continued market sentiment that the US Federal Reserve may cut interest rates later this year.
US and Europe Indices
  • US Equities climbed as the Fed kept interest rates unchanged but signalled its readiness to sustain economic expansion by easing monetary policy in the future. The DJIA closed at 26,504 (+0.15% DoD) while the S&P 500 ended at 2,926.46 (+0.30% DoD).
     
  • European Equities traded flat after Tuesday's large gains as investors await for Fed's decision on monetary policy. MSCI Europe closed at 129.28 (+0.04% DoD).
     
  • US Treasury yields fell further to 2.0697% (-6.99bps) on average after the Fed struck a more dovish tone in its June policy statement. Although the Fed held its benchmark interest rates steady, a near-term cut is likely with eight members open to cutting rates by the end of 2019.
     
  • The US Dollar fell after the Federal Reserve held interest rates steady at its regular meeting. The DXY closed at 97.1170 (-0.54% DoD).
Asia Pacific Index
  • Asian stocks continue to rise despite the release of data showing that Japan exports declined 7.8% in May. Markets across the continent rose amid positive news surrounding the US-China trade tensions. The MSCI APxJ closed at 518.85 (+1.84% DoD).
Sources: BPI, Business World, PDI, Phil Star, Manila Bulletin, Reuters, Briefing, Bloomberg, CNN, Dow Jones, The Wall Street Journal, CNBC
 

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