THE MORNING VIEW

THE MORNING VIEW


News Briefs
April 21, 2021
 
Local Key Events
  • The Bangko Sentral ng Pilipinas will require too-big-to-fail banks to separately submit a recovery plan every year starting 2022. This measure will provide the regulator a more focused assessment of the banks’ plans to recover from the crisis. Previously, the central bank only required domestic systemically important banks (D-SIBs) to submit an Internal Capital Adequacy Assessment Process document, which already included the recovery plan.
  • Ayala Corp. (PSE Ticker: AC), expects to triple its balance sheet following its planned infusion of international assets and recent fund raising. ACEN currently has a capacity of 1,034MW and expects to reach a capacity of 2,400MW after its planned infusion.
Local Indices
  • Local equities gained on bargain hunting. Mining and industrial stocks led gains, rising 2.2% and 1.7%, respectively. The PSEi finished at 6,500.42. (+0.63% DoD).
  • Local fixed income yields were flat amid lack of major market catalysts. Nonetheless, the overwhelming situation in local hospitals amid the elevated number of COVID-19 infections continued to dampen market sentiment. On average, yields fell by 0.05 bps DoD, led by the short-end of the curve which declined by 0.11 bps. 
  • The Philippine Peso was flat as last-minute buying boosted local stocks. This is also following the government’s announcement that it will offer euro-denominated bonds. The USD/PHP pair closed at 48.320 (-0.06% DoD). 
US and Europe Indices
  • US equities inchcontinued to decline as investors took profit on the recent highs following upbeat earnings release last week. The DJIA closed at 33,821.30 (-0.75% DoD) while the S&P 500 closed at 4,134.94 (-0.68% DoD). 
  • European equities dropped amid concerns on COVID-19 globally as resurgence has been evident in some countries like India. The MSCI Europe closed at 143.58 (-1.92% DoD).
  • US Treasury yields fell as investors flocked to safe haven assets driven by fears on the COVID-19 resurgence globally. On average, US Treasury yields fell by 2.35 bps DoD on average, with the 2Y ending at 0.1492% (-0.80 bps) and the 10Y closing at 1.5589% (-4.58 bps).
  • The US Dollar moderately strengthened amid continued concerns over the increasing number of daily COVID-19 cases globally. Moreover, investors closely monitored developments in the US Treasury yields. The DXY closed at 91.2410 (+0.189% DoD).
Asia Pacific Indices
  • Asian equities were flat as the central bank of China held its benchmark rates steady, easing worries of potential policy tightening. The MSCI APxJ closed at 696.15 (-0.08% 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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