BAIPHIL Market Watch – 13 July 2021 Page 1 of 4

kGo To Homepage BAIPHIL 13 July MARKET WATCH 2021 Legend BAIPHIL@80: Improvement / Up Deterioration / Down

Building Resilience Through Strong Governance No Movement

FINANCIAL MARKETS AT A GLANCE

Currency Exchange 1 Current Previous Domestic Stock Index 3 Current Previous USD/PHP 50. 1200 50.0800 PSEi 6, 913.87 6,834.92 USD/JPY 110. 2900 110.1400 Trade Value (Php B) 4.836 8.419 USD/CNY 6. 4755 6.4790

EUR/USD 1.1868 1.1876 Stock Index 4 Curre nt Previous GBP/USD 1.3892 1.3901 NIKKEI 225 28,569.02 27,940.42

FTSE 100 7,125.42 , 7,121.88 PHP BVAL DOW JONES 34,996.18 34,870.16 2 Current Previous Reference Rates S&P 500 4,384.63 4,369.55 30 -Day 0. 9786 0.9792 NASDAQ 14,733.24 14,701.92 91 -Day 1. 1782 1.1775 Various 5/6 Curren t Previous 180 -Day 1. 4071 1.4123 Brent Crude (USD/bbl) 75.40 75.55 1-Year 1. 6089 1.6022 3-M US Treasury Yield 0. 05 % 0.06% 3-Year 2. 3442 2.3357 5-Y US Treasury Yield 0. 81 % 0.79% 5-Year 2. 9635 2.9501 10 -Y US Treasury Yield 1. 38 % 1.37% 10 -Year 3. 8725 3.8513

PHILIPPINES

 Stocks bounce from last week’s losses. The local stock market bounced off last week’s losses on bargain-hunting spurred by upbeat US bourses. The main index rose 78.95 points or 1.15 percent to close at 6,913.87 as the Services and Mining and Oil counters led the advance across the board. https://mb.com.ph/2021/07/12/stocks-bounce-off-last-weeks-losses/

 P/$ rate closes at P50.12/$1. The peso closed lower at P50.12 to the US dollar Monday, (July 12) from P50.08 last Friday. The weighted average rate depreciated to P50.111 from P50.083. Total volume amounted to $664.2 million according to the Bankers Association of the Philippines. https://mb.com.ph/2021/07/12/p-rate-closes-at-p50-12-1/

 T-bill rates rise as peso weakens to 50:$1. Treasury bill rates rose across-the-board on Monday (July 12) alongside a weaker peso which fell to the 50:$1 level last week. The Bureau of the Treasury awarded all P15 billion in T-bills it offered as demand remained strong with a total of P42.1 billion in bids across the three tenors, or maturity periods, making the auction almost three times oversubscribed. https://business.inquirer.net/326886/t-bill-rates-rise-as-peso-weakens-to-501

 BSP registers P4-M rediscounting loan. For the first time this year, the Bangko Sentral ng Pilipinas (BSP) released P4 million under its peso rediscounting loan, which was unused by banks since the third quarter 2020 due to excess money supply. In the first six months of 2021, the BSP said a lone rediscounting availment of P4 million is the rediscount by a bank under production credits, for a loan that “financed industrial processing.” https://mb.com.ph/2021/07/12/bsp-registers-p4-m-rediscounting-loan/

 Long term funds surged into PH in April as foreigners snap up PH debt. The inflow of long term investments into the country continued its momentum in April 2021 as foreign fund managers allocated more money to Philippine-issued debt from both the public and private sectors, according to the Bangko Sentral ng Pilipinas (BSP). In a statement, the BSP said that foreign direct investment net inflows rose by 114.4 percent year-on-year to $679 million from $317 million in the same period last year. https://business.inquirer.net/326902/long-term-funds-surged-into-ph-in-april-as-foreigners-snap-up-ph-debt

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 Fitch Ratings revises PH outlook to ‘Negative’. Fitch Ratings has revised the Philippines’ outlook to “Negative” from “Stable” due to the national government’s weakening fiscal finances brought about by the prolonged coronavirus pandemic. In a statement released Monday evening, July 12, the London-based credit rater cited the increasing risks to the country’s credit profile from the impact of the pandemic. https://mb.com.ph/2021/07/12/fitch-ratings-revises-ph-outlook-to-negative/

 AMLC: Philippines to use AI to fight dirty money. The Philippines is utilizing artificial intelligence (AI) to fight money laundering as well as terrorist and proliferation financing after the country was included in the gray list of global dirty money watchdog Financial Action Task Force (FATF). https://www.philstar.com/business/2021/07/13/2111998/amlc-philippines-use-ai-fight-dirty-money

 Lopez wants to keep GCQ status. Maintaining a general community quarantine (GCQ) level in the National Capital Region and neighboring provinces (NCR Plus) ensures continued reopening of the domestic economy, Trade and Industry Secretary Ramon M. Lopez said. This is in contrast to the position of Economic Planning Secretary Carl Kendrick Chua that there is no need for GCQ anymore despite the threat of the Delta variant. The country’s chief economic strategist even proposed for a face-to-face classes. https://mb.com.ph/2021/07/12/lopez-wants-to-keep-gcq-status/

 Duterte economic team cold to prolonging GCQ in NCR, high-risk areas. Finance Secretary Carlos Dominguez III and Socioeconomic Planning Secretary Karl Kendrick Chua on Monday (July 12) sought to continue managing pandemic risks while speeding up mass vaccina- tion to protect not only lives but also livelihoods from the threat posed by more contagious virus variants which forced recent lockdowns in neighboring countries. “We recognize the higher risk brought about by the Delta variant. This can be better managed by guarding our borders and enforcing health standards,” Dominguez quoted Chua as saying. https://business.inquirer.net/326895/duterte-economic-team-cold-to-prolonging-gcq-in-ncr-high-risk-areas

 Philippines cautioned against loosening social restrictions. Moody’s Analytics has warned the Philippines about loosening its social restrictions amid the recent trend in the resurgence of COVID-19 infections as well as the spread of the Delta variant across Asia-Pacific. In a report, Moody’s Analytics senior Asia-Pacific economist Katrina Ell and economist Stefan Angrick said the contagious Delta strain is sweeping through Asia and hurting the region’s economic recovery. https://www.philstar.com/business/2021/07/13/2112007/philippines-cautioned-against-loosening-social-restrictions

 130,000 OFWs returning home – OWWA. At least 130,000 overseas Filipino workers (OFWs) are coming home from different countries in the next months, the Overseas Workers Welfare Administration (OWWA) reported yesterday. OWWA chief Hans Cacdac said with the large number of OFWs expected to return home, the agency is seeking additional funding for the quarantine hotel accommodations and other needs of migrant workers. https://www.philstar.com/nation/2021/07/13/2112015/130000-ofws-returning-home-owwa

 Meralco to procure additional power supply in next 2 years. DanessaManila Electric Co. (Meralco) will procure nearly 4,000 megawatts (MW) of baseload and mid-merit supply in the next two years to meet its projected demand growth until 2049. In its Power Supply Procure- ment Plan 2021-2030 submitted to the Department of Energy, Meralco said it would subject to competitive selection process (CSP) a total of 3,850 MW starting this year until next year. https://www.philstar.com/business/2021/07/13/2112004/meralco-procure-additional-power-supply-next-2-years

REST OF THE

WORLD

 Dow hits 35,000 points as US stocks end at records. The Dow flirted with its first-ever close above 35,000 points on Monday (Jul 12) as US stocks turned in another record-filled session ahead of a heavy schedule of earnings releases and economic reports. The blue-chip index finished at 34,996.18, a gain of 0.4 per cent. The index was just above 35,000 points at the 8pm GMT closing bell, but settled under the benchmark after the close. https://www.channelnewsasia.com/news/business/dow-hits-35-000-points-us-stocks-end-records-15209532

 China is injecting $150 billion into the economy — that may fuel a short-term rally, UBS says. China’s move to cut the amount of funds banks need to hold in reserve could boost market sentiment — and that could be good news for stocks in certain sectors, according to investment bank UBS. The People’s Bank of China said Friday it would cut the reserve requirement ratio (RRR) by 50 basis points for all banks, effective from July 15. The move is expected to release around 1 trillion yuan (or $154 billion) in long-term liquidity into the economy. https://www.cnbc.com/2021/07/12/china-monetary-policy-pboc-to-cut-rrr-impact-on-economy-and-sectors.html

 England expected to confirm lockdown lifting despite fears over delta surge. U.K. Prime Minister Boris Johnson is expected to confirm on Monday that the final easing of lockdown rules in England will go ahead of July 19. The move comes despite a continuing surge in coronavirus cases caused by the more infectious delta variant; over 31,000 new cases were reported in the U.K. on Sunday. https://www.cnbc.com/2021/07/12/england-expected-to-confirm-lockdown-lifting-despite-fears-over-delta-surge.html

 ECB to change policy guidance at next meeting, Lagarde says. The European Central Bank will change its guidance on the next policy steps at its next meeting to reflect its new strategy and show it is serious about reviving inflation, ECB President Christine Lagarde said in

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an interview aired on Monday. Announced last week, the ECB’s new strategy allows it to tolerate inflation higher than its 2% goal when rates are near rock bottom, such as now. https://www.cnbc.com/2021/07/12/ecb-to-change-policy-guidance-at-next-meeting-lagarde-says.html

 Yellen urges EU to back global tax deal, consider more fiscal support. U.S. Treasury Secretary Janet Yellen urged European Union countries on Monday to sign on to a global deal to revamp corporate taxation, keep fiscal support through 2022 and consider more spending in the face of COVID-19 uncertainty. "We need sustainable sources of revenue that do not rely on further taxing workers' wages and exac- erbating the economic disparities that we are all committed to reducing," Yellen said in remarks prepared for delivery to Eurogroup finance ministers. https://www.reuters.com/business/yellen-urges-eu-back-global-tax-deal-keep-fiscal-support-2021-07-12/

 As crackdown looms, South Korea's defiant crypto fans dig in. By Sep 24, South Korea's numerous cryptocurrency exchanges will need to disclose risk management and partner with banks to ensure trading accounts are held by real people. The rules, analysts say, could result in exchanges delisting hundreds of such "altcoins" as they vie for tie-ups with banks. https://www.channelnewsasia.com/news/business/as-crackdown-looms--south-korea-s-defiant-crypto-fans-dig-in-15209536

 UK, European manufacturers want battery supply chain nearer home: Survey. British manufacturers and those in other parts of Europe want to move more of the supply chain for batteries used in electric cars and renewable energy away from China and closer to their plants, a survey showed on Tuesday (Jul 12). China dominates the processing of the minerals used in electric batteries, as well as making the cells and related components, with Japan and South Korea in a distant second and third place. https://www.channelnewsasia.com/news/business/uk-european-manufacturers-want-battery-supply-chain-nearer-home-15209542

 Commerce Secretary Raimondo pushing to lift tough US travel restrictions. US Commerce Secretary Gina Raimondo said on Monday (Jul 12) she is pressing for the easing of coronavirus restrictions that bar much of the world from traveling to the United States but that US health officials remain concerned about more outbreaks. https://www.channelnewsasia.com/news/world/us-commerce-secretary-ease-tough-travel-restrictions-covid-19-15209404

 Singapore-Australia travel bubble more likely in end-2021, says Australian minister. A planned travel bubble between Singapore and Australia is "more likely to happen" towards the end of 2021, said Australian Minister for Trade, Tourism and Investment Dan Tehan. Speak- ing to CNA, Mr Tehan said that certain measures have to be implemented before a travel bubble can be launched between the two countries. https://www.channelnewsasia.com/news/singapore/singapore-australia-travel-bubble-delay-end-2021-15205424

 WHO warns against mixing and matching COVID vaccines. The World Health Organization’s chief scientist on Monday advised against people mixing and matching COVID-19 vaccines from different manufacturers, calling it a “dangerous trend” since there is very little information on doing so. https://newsinfo.inquirer.net/1458899/who-warns-against-mixing-and-matching-covid-vaccines

 US FDA updates warning label for Johnson & Johnson's COVID-19 vaccine about rare neurological disorder. The US Food and Drug Administration updated its warning labels on Monday (Jul 12) for the Johnson & Johnson (J&J) COVID-19 vaccine to include information about an observed "increased risk" of a rare neurological disorder called Guillain-Barre Syndrome (GBS). https://www.channelnewsasia.com/news/world/johnson-covid-19-vaccine-increased-risk-neurological-disorder-15209498

 Beta variant deadlier than original, may increase hospitalizations and deaths. The Beta variant of the coronavirus may be deadlier than the original version of the virus, according to researchers in South Africa who studied more than 1.5 million COVID-19 patients. Although the Delta variant now accounts for the largest percentage of new COVID-19 cases in many countries, Beta is still circulating, with mutations that make it highly contagious and harder to prevent or treat than the original version. https://newsinfo.inquirer.net/1458910/beta-variant-deadlier-than-original-may-increase-hospitalizations-and-deaths

 Basic Course on Corporate Governance – 16 July 2021  Independent Validation / Auditing of the ICAAP in Banks – 27 July-03 August 2021  Fraud & Forgery Detection and Prevention – 18-19 August 2021  Bank Fraud Audit Examination Series – 01-08 September 2021  Accounting for Non-Accountants with Financial Statement Analysis – 13-14 September 2021

For details, please contact BAIPHIL via email ( [email protected] ).

BAIPHIL Market Watch – 13 July 2021 Page 3 of 4

REFERENCES

1 Reuters: https://www.reuters.com/finance/currencies 2 Philippine Dealing System: http://www.pds.com.ph/ 3 Philippine Stock Exchange: http://www.pse.com.ph/stockMarket/home.html 4 Reuters: https://www.reuters.com/markets/stocks 5 Bloomberg: https://www.bloomberg.com/markets/commodities 6 CNN Money: https://money.cnn.com/data/bonds/

OTHER REFERENCES / EXTERNAL LINKS

 Philippine Stock Exchange: http://www.pse.com.ph/stockMarket/home.html  CNN Money: http://money.cnn.com/  Philippine Dealing System: http://www.pds.com.ph/  Bangko Sentral ng Pilipinas: http://www.bsp.gov.ph/  GMA News Online: http://www.gmanetwork.com/news/  Bankers Association of the Philippines: http://bap.org.ph/  BPI Asset Management: https://www.bpiassetmanagement.com/  Bureau of Treasury: http://www.treasury.gov.ph/  Business World: http://bworldonline.com/  Philippine Statistics Authority: https://psa.gov.ph/  Philippine Daily Inquirer: http://business.inquirer.net/  Trading Economics: https://tradingeconomics.com/  Philippine Star: https://www.philstar.com/business/  South China Morning Post: http://www.scmp.com/  ABS-CBN News: http://news.abs-cbn.com/business/  Japan Times: https://www.japantimes.co.jp  Manila Bulletin: https://mb.com.ph/  The Japan News: http://www.the-japan-news.com  Manila Standard: http://manilastandard.net/  Market Watch: https://www.marketwatch.com/  Philippine News Agency: www.pna.gov.ph  Asia Nikkei: https://asia.nikkei.com/  AutoIndustriya: https://www.autoindustriya.com/  Straits Times: https://www.straitstimes.com/global  The Wall Street Journal: https://www.wsj.com/asia/  Channel News Asia: https://www.channelnewsasia.com/  Reuters: https://www.reuters.com/  CNBC: https://www.cnbc.com/  Bloomberg: https://www.bloomberg.com/markets/  The New York Times: https://www.nytimes.com/  Business Mirror: https://businessmirror.com.ph/  Gulf News: https://gulfnews.com/

COMPILED AND PREPARED BY: MARIA AZALEA ECHAVEZ, Corporate Communications and Information Exchange Committee

DISCLOSURE : The BAIPHIL Market Watch (BMW) is for informational purposes only. The content of the BMW is sourced from third party websites and may be subject to change without notice. Although the information was compiled from sources believed to be reliable, no liability for any error or omission is accepted by BAIPHIL or any of its directors, officers or employees, and BAIPHIL is not under any obligation to update or keep current this information.

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