Property moves, policy shifts, and global headwinds
Here’s a recap of last week’s (ending June 13) market activity from First Metro Securities.
Property news
Emperador Properties (EMI), the Spanish real estate arm of billionaire Andrew Tan, has completed its full acquisition of the Caleido complex in Madrid, boosting its total asset value by 34.23 percent to 1 billion euros.
Robinsons Land Corp. (RLC) plans to develop a new 22-hectare destination estate in Taguig City, expanding its portfolio that includes Bridgetowne, Sierra Valley Gardens, and Montclair.
Sta. Lucia Land, Inc. (SLI) reported a 31 percent decline in its first quarter net income to P938.05 million. Total revenues and real estate sales dropped amid weaker demand.
Economic news
Rate cut. The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) is expected to cut key interest rate by 25 basis points to 5.25 percent at the June 19 meeting, as analysts point to easing inflation, weak economic growth, and a stable peso.
Deficit. The Philippines’ current account deficit doubled to $4.2 billion (3.7 percent of Philippine gross domestic product) in the first quarter, driven by rising import costs outpacing export earnings, according to BSP.
External debt. The Philippines’ outstanding external debt rose to $146.74 billion by the end of March, up 6.6 percent from the previous quarter and 14 percent year-on-year. This was fueled mainly by new borrowings from the government and local banks, the BSP reported.
Philippine Stock Exchange index
PSEi 6,395.59 (+14.27 pts; +0.2236%); Val T/O: P9.245 Bn; $164.681 Mn; (ex-block)
The local bourse eked out modest gains post-holiday, with the main gauge rising 14.27 points (+0.22 percent) to close at 6,395.59 on June 13, as investors balanced renewed foreign buying with lingering risk concerns. Foreign flows swung sharply to net inflows of P654 million on healthy turnover of P9.24 billion.
The local market enters this week on edge, with risk appetite likely tempered by heightened geopolitical tensions in the Middle East. Oil prices are poised to spike following the bombing of a key Iranian facility, raising fresh inflation fears and clouding the outlook ahead of major policy meetings.
Both the Fed and BSP are set to decide on interest rates Thursday. While the Fed is expected to hold steady, the BSP is widely anticipated to cut by 25 basis points, given the softer first quarter GDP and sub-target inflation.
However, surging fuel costs could complicate the central bank’s easing path. With volatility expected, we anticipate cautious, range-bound trading as investors weigh macro crosscurrents and geopolitical headlines.
