THE MORNING VIEW

THE MORNING VIEW


News Briefs
April 17, 2019
Local Key Events
  • JG Summit Holdings, Inc. (PSE Ticker: JGS) reported its net income attributable to equity holders of the parent declined to Php19.18 billion, a 35% decrease from last year's Php29.36 billion. The decrease was driven by weaker local currency, higher finacing costs, and market valuation losses on financial assets.
     
  • The Bureau of Internal Revenue (BIR) reported that an interagency task force, including the Department of Labor and Employment (DOLE), is addressing the problem of untaxed foreign workers. It stated that the campaign will target unregistered foreign workers and will be prioritizing those employed by Philippine Offshore Gaming Operators (POGOs).
Local Indices
  • The local equities market rose, in part along with the regional upswing, and partly as investors breathed a sigh of relief that President Duterte finally signed the 2019 national budget into law. The PSEi closed at 7,826.46 (+0.49% DoD).
     
  • Local fixed income yields fell following the Bureau of Treasury (BoTr) partially awarding the Treasury bills (T-bills) it placed on auction yesterday. Offer for the T-bills was oversubscribed with demand reaching Php24.784 billion. Both the 91-day and 182-day papers were partially awarded, while the 364-day tenor bids were entirely rejected. On average, the curve fell 8.87 bps led by the short-end which fell 26.15 bps.
     
  • The Philippine Peso slightly weakened driven by lower-than-expected remittances figure for February 2019 at USD2.301 billion, a 1.5% YoY increase.  This reflects a slower pace than February growth last year and the slowest incremental growth since August 2018. The Philippine Peso closed at 51.765 (0.24% DoD).
US and Europe Indices
  • US equities were higher as the earnings season rolls on. Bank earnings were mixed with strong Blackrock results offsetting the weaker-than-expected performance of Bank of America. The DJIA closed at 26,452.66 (+0.26% DoD), while the S&P500 ended at 2,907.06 (+0.05% DoD).
     
  • European shares gained mainly driven by encouraging soft data. In Germany, the ZEW Economic Sentiment survey was 3.1% in April comfortably beating analysts' expectations of 1.9%. The MSCI Europe closed at 131.27 (+0.28% DoD).  
     
  • US Treasury yields rose as risk-taking was buoyed by slightly better-than-expected bank earnings and stabilizing economic data abroad. On average, yields rose by 2.70 bps, with the 10-year rising by 3.61 bps to 2.5904%.
     
  • The US Dollar strengthened despite positive news domestically and globally. The increase might be due to higher yields enticing investors to buy the dollar. The DXY Index closed at 97.0430 (+0.10% DoD).
Asia Pacific Index
  • Asian equities rallied on the back of upbeat talk from the White House on the US-China trade war. Investors are also optimistic on the upcoming economic data releases from China after the stronger-than-expected trade and credit numbers. The MSCI APxJ closed at 545.26 (0.54% 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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