For Equities, The PSEi declined by 2.83% (226 pts) for the week as concerns on global trade issues re-surfaced last weekend. Foreigners sold $10.3m (Php 2.7Bn) and volumes spiked to above-average-figure of $136m (Php 7Bn). Meanwhile in Fixed Income, The BSP cut its policy rate by 25 bps to 4.50% on the back of easing inflation and slowing economic growth. Risk-off sentiment drove US Treasury yields lower during the week on the back of renewed US-China trade tensions.

For Equities, the PSEi rose 1.27% WoW to 7,968 as of May 3. It breached above 8,000 level on May 2 after the Philippines got a credit rating upgrade from S&P to BBB+ (two notches above investment grade) with a stable outlook. Meanwhile in Fixed Income, The unexpected investment rating upgrade for the country by the S&P, accompanied by weak data on Money Supply and Bank Lending, strengthened bond buying in the secondary market. US Treasury yields traded higher with 2-, 5- , 10- and 30-yr yields closing higher by an average of 3bps.

For Equities, the PSEi rose 0.42% WoW to 7,868.3 despite a series of earthquakes experienced across the country including two in Pampanga and Eastern Visayas, with magnitude greater than 6. With regard to earnings results, we note banks kicked off the 1Q earnings reporting season. . Meanwhile in Fixed Income, More 1Q earnings results may set the direction of the market in the coming week. At week’s close, 2-, 5- , 10- and 30-yr UST(s) yields decreased by an average of 3bps. This was driven by good 2-year auction results.