Download daily review 2016-07-20

PAMI DAILY REVIEW
July 20, 2016
Markets At A Glance
U.S.A.
U.S.A.
PSEi Index
EUROPE
CHINA
HONG KONG
Shanghai Comp
Ind
3,036.60
HK Hang Seng
Dow Jones
S&P 500
FTSE 100
18,559.01
0.14%
2,163.78
-0.14%
6,697.37
0.03%
-0.23%
21,673.20
-0.60%
News Highlights
-
MANILA, Philippines – Investment pledges approved by the Board of Investments (BOI) more than
doubled in the first half of the year as sustained investor confidence in the new government led to more
power and transportation infrastructure projects. BOI data released yesterday showed approved
investments reached P186.51 billion in the first six months of 2016, a 103% jump from the P92.02 billion
generated in the same period last year. With the numbers already covering the months of May and June,
BOI chair and Trade Secretary Ramon Lopez said the triple-digit growth is indicative of continued investor
confidence as the country transitions to the Duterte administration. Lopez said BOI is expecting the
upsurge in investment registration to continue in the coming months . (Source: The Philippine Star
8,036.01
+49.76 (+0.62%)
8,042.09
8,032.04
8,033.99
7,986.25
8,037.41
6,084.28
+6.51%
+15.54%
23.68
9.3T
High
Low
Open
Prev Close
52w High
52w Low
1y Rtn
YTD Rtn
P/E Ratio
Mkt Cap
*Source: Bloomberg
The Global Economy
-
-
-
US: Wall Street closed mixed Tuesday after weeks of record highs for stocks, as investors digested
second-quarter earnings. Bank earnings continued to surprise with Goldman Sachs posting better-thanexpected results Tuesday. Oil prices fell as concerns over a global glut were offset by a new disruption in
Libyan supply, Reuters reported. A protest shut down an eastern Libyan oil terminal, forcing the operator
to suspend production of 100,000 barrels per day, according to Reuters. (Source: CNBC 07/19/2016)
EU: European stocks closed largely lower on Tuesday, but pared some losses, as investors trod carefully
amid earnings and geopolitical tensions. The French CAC index and German DAX provisionally ended
0.6% and 0.8% lower respectively. U.K. inflation rose 0.5% in June compared to a year ago, the Office for
National Statistics reported on Tuesday. The Zew Institute's German economic index fell to -6.8 in July
from 19.2 in the previous month, with the organization naming uncertainty around Brexit as the main
driver. (Source: CNBC 07/19/2016)
Asia: Asia markets opened mostly lower on Wednesday, following a mixed finish in the U.S. as investors
digested second-quarter earnings. In Japan, the benchmark Nikkei 225 was down 0.85%, after finishing
the Tuesday session at a six-week high. Across the Korean Strait, the Kospi was off by 0.54%. The
Japanese yen traded at 106.02 against the greenback, weakening considerably from levels near 100 two
weeks earlier. Oil prices advanced during Asian hours, with global benchmark Brent up 0.43% at $46.86 a
barrel, while U.S. crude futures added 0.25% at $44.76. (Source: CNBC 07/20/2016)
The Local Stock Market
- STOCKS rose yesterday, with the main index returning to the 8,000 level, amid stable prospects for the
Philippine economy following the Asian Development Bank’s (ADB) retention of its growth forecasts for
the country. Philippine gross domestic product (GDP) is seen on track to expand by 6.1% in 2017,
unchanged from ADB’s March estimate as strong domestic demand is set to stimulate the economy
further to offset external headwinds. The benchmark Philippine Stock Exchange index (PSEi) ticked up by
0.62% or 49.76 points to finish at 8,036.01, successfully returning above the 8,000 mark. All counters
ended in the green yesterday except mining and oil, which went down by 0.37% or 41.71 points to
11,241.39. In contrast, the holding firms counter posted the largest increase yesterday as it went up by
0.90% or 71.31 points to 7,925.73. (Source: BusinessWorld Online 07/20/2016)
The Bonds Market
-
A COMBINATION of developments both at home and abroad, in particular the risk-on sentiment in the
local equities market and continued uncertainty over the direction of economic growth in developed
markets, sent yields on government securities (GS) upwards. GS yields shot up 15.81 basis points (bps)
on average week-on-week, data from the Philippine Dealing & Exchange Corp. as of July 15 showed. At
the secondary market last Friday, double-digit increases were seen in the short- and long-ends of the yield
curve, as well as the belly. For the short end, the 364-day Treasury bills (T-bills) saw its rates jump by
57.83 bps to fetch 2.8933%. Yields on the 91-day paper likewise went up by 5.08 bps (1.8058%) while the
182-day T-bill’s yield movement was flat, only down by half a basis point (1.8743%). Government Security
yields this week is expected to “show some downward bias,” expecting more dovish comments from the
European Central Bank (ECB) when they meet on Thursday to decide on interest rates. (Source:
BusinessWorld Online 07/18/2016)
PAMI Funds
PFI
PHFI
PEIF
NAVPS
1.1537
4.2495
2.2895
17.5793
3.9323
53.7390
9.97%
10.37%
15.05%
PSGF
575.6300
13.82%
PABF
PGBF
0.9194
3.83%
4.92%
Funds
PMIF
PBF
PDBF
YTD
-0.16%
6.62%
8.49%
1.1002
*as of previous day's closing.
USDPHP Exchange Rate
Previous day's Close
46.940
Change (P)
Change (%)
0.2150
0.46%
*Source: Bloomberg.
PDST-Reference Rates
Tenor
1M
6M
1Y
5Y
10Y
20Y
25Y
PDST-R1
1.7437
1.8320
2.0690
2.8665
3.8787
3.9366
-
PDST-R2
1.7437
1.8287
1.5774
2.8634
3.8753
3.9330
-
*Source: PDS Group
Economic Indicators
SDA Rate
Inflation Rate (June 2016)
GDP Growth (1Q2016)
2.50%
1.90%
6.90%
*Latest figures as of release dates.
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