Unicapital Research

The local currency opened at PhP 61.63 per dollar and closed at PhP 61.721, shedding 8 centavos from the previous session. Trading activity also eased, with volume reaching USD 1.2B, lower than the USD 1.6B recorded in the prior session. @UTradePH

Currency. The Philippine peso weakened further on May 15, pressured by stronger expectations that the US Federal Reserve will keep interest rates elevated for longer following recent US inflation data. @UTradePH

Oil. Oil prices pushed higher on Friday after US President Trump announced that he is losing patience with Iran. International benchmark Brent crude rose 3.35% to USD 109.26/bbl, while US WTI futures advanced by 4.20% to end at USD 105.42/bbl. @UTradePH

The National Irrigation Administration (NIA) remained the largest recipient, 22% of total subsidies, followed by the National Electrification Administration (NEA) with PhP 3.0B, and the Power Sector Assets and Liabilities Management Corp (PSALM) which received PhP 2.5B @UTradePH

On a monthly basis, subsidies also jumped 240.3% from February levels. @UTradePH

GOCC subsidies ramp up in March. Subsidies to government-owned and -controlled corporations (GOCCs) surged 70.8% YoY to PhP 18.15B in March, according to the Bureau of the Treasury (BTr), significantly higher than the PhP 10.63B recorded a year earlier. @UTradePH

@UTradePH The S&P 500 slipped by 1.24% to close at 7,408.50, while the Nasdaq Composite shed off 1.54% to 26,225.14. Additionally, the DJIA ended the session 1.07% down at 49,526.17. @UTradePH

US stock market. US equities fell at the end of last week, dragged down by losses in the tech sector and rising Treasury yields following an uneventful meeting between US President Trump and Chinese President Xi. @UTradePH

@UTradePH Moreover, foreign investors remained net sellers during the session, with net outflows totaling PhP 195.41M. @UTradePH

@UTradePH Mining and Oil led the decline as it tumbled by 2.52%, followed by Financials (-2.39%) and Holding Firms (-2.33%). These losses were partially offset by gains in Services (+1.59%) and Industrials (+0.01%). @UTradePH

$PSEi. The Philippine Stock Exchange index (PSEi) declined on Friday as the continued weakness of the peso against the U.S. dollar weighed on investor sentiment. The local benchmark fell 0.64% to 5,976.77, with most sectors ending in negative territory. @UTradePH

@UTradePH While bad loans rose in absolute terms, faster loan growth helped lower the ratio. Stable jobs, manageable cash flows, and banks’ tighter lending standards supported asset quality. @UTradePH

Banking sector. The Philippine banking sector’s NPL ratio slightly improved to 3.29% in March from 3.33% in February, showing that borrowers are still managing to repay loans despite rising oil prices and Middle East tensions. @UTradePH

@UTradePH The higher WACC allows NGCP to earn a bigger return on its investments and recover capital costs more effectively during the regulatory period. @UTradePH

@UTradePH The regulator increased NGCP’s maximum allowable revenue to PhP 380.5B from PhP 376.4B after raising its weighted average cost of capital (WACC) to 11.92% from 11.74%. @UTradePH

Power sector. The Energy Regulatory Commission (ERC) adjusted the revenue cap for the National Grid Corp of the Philippines (NGCP) to PhP 380.5B through 2027 following the approval of higher regulated return on capital. @UTradePH

@UTradePH URC said it has already quantified these impacts and is implementing mitigation measures such as cost-saving initiatives and price increases. @UTradePH

@UTradePH The company is preparing under a USD 100-per-barrel oil scenario, with expected cost increases coming from transport, fuel, packaging materials, and other oil-derived inputs. @UTradePH

$URC. Universal Robina Corporation said it activated “emergency crisis mode” across all business units following the escalation of the Middle East conflict, as rising oil prices continue to pressure operating costs. @UTradePH