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THE MORNING VIEW



News Briefs
April 03, 2020
Local Key Events
  • The Bureau of Internal Revenue released Revenue Regulations No. 7-2020, which includes the implementing guidelines for Republic Act No. 11469 or the Bayanihan to Heal as One Act. This act provides taxpayers an extension of the deadline for filing of tax returns, tax payments, and submission of any documents as the country is under a state of national emergency due to the COVID-19 pandemic.
  • Aboitiz Power Corp. (PSE ticker: AP) announced that it cancelled the deal for the acquisition of a wind power company in Vietnam. The agreement signed in August 2019 between AP's subsidiary AboitizPower International Pte. Ltd. and Armstrong Southeast Asia Clean Energy Fund Pte. Ltd. was terminated due to a difficulty in the completion of deliverables of the relevant parties as set on the agreed upon deadlines.
Local Indices
  • Local equities closed lower yesterday on profit-taking after two days of gains, and as foreigners continued to sell Philippine stocks amid the continued Luzon-wide lockdown. The PSEi closed at 5,342.31 (-1.22% DoD).
     
  • Local fixed income yields ended mixed but rose on average yesterday as investors remained on the sidelines. On average, yields increased by 1.39 bps DoD led by the long-end of the curve which rose 4.53 bps and followed by the belly which rose 1.80 bps. Demand was mostly for shorter tenors with yields at the short-end declining 1.37 bps.
  • The Philippine peso traded sideways versus the US dollar yesterday and as market investors awaited the release of economic data from the US. The USD/PHP pair finished at 50.850 (-0.06% DoD).
US and Europe Indices
  • US equities recovered led by energy stocks after US President Trump called for oil production cuts. However, gains were capped by the worst initial jobless claims report in the US which spiked to 6.6 mn, from 3.3 mn in the previous week. The DJIA closed at 21,413.44 (+2.24% DoD) and the S&P 500 ended at 2,526.90 (+2.28% DoD).
  • European stocks ekked out a gain as energy sector turned positive on the back of higher oil prices. Brent, an international benchmark for oil, surged 21% DoD. . The MSCI Europe closed at 104.90 (+0.55% DoD).
  • US Treasury yields remained steady despite the soar in jobless claims, giving the US its worst unemployment report. On average, yields rose by 1.73 bps DoD. The 10Y closed at 0.5970% (1.38 bps DoD) and the 2Y closed at 0.2255% (1.94 bps DoD).
     
  • The US Dollar continued to strengthen as uncertainties surrounding the global economy continued to worry investors globally. The DXY index closed at 100.1800 (0.509%).
Asia Pacific Index
  • Asian equities slightly rose amid growing fears of economic recession due to the COVID-19 pandemic. As of writing, confirmed cases were 1,014,449, with 53,166 fatalities.  The MSCI APxJ closed at 431.68 (+0.45% 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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