Philippine Perspective: The Weekly Rewind: Rates and rebalancing rule

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Philippine Perspective: The Weekly Rewind: Rates and rebalancing rule

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Philippine Perspective

The Weekly Rewind: Rates and rebalancing

rule

Country Overview

Market: Policy rate decision up next 12 June 2026

The PSE index (PSEi) fell 0.5% this week on moderate volume. An estimated US$17mn Equity Strategy

worth of foreign buying came through the market on June 10-11 to pare down the ASEAN

month-to-date outflow to US$12mn. Investors await the policy rate decision of the Jojo Gonzales ^^

Bangko Sentral in the coming week (19 June) and gauge the appetite of policy makers Research Analyst

for the pace and extent of rate hikes after a lower-than-expected May inflation print Philippine+63 2 8640Equity6767Partners

seen earlier this month. Our forecast is for a 25bp rate hike in June and August. jojo.gonzales@pep.com.ph

Philip Albert Felix ^^

Conglomerates: Raise GTCAP PO to P880 ResearchPhilippineAnalystEquity Partners

We raise the PO of GTCAP to P880 with adjustments mainly to the value of unlisted philip.felix@pep.com.ph

subsidiaries. GTCAP EPS in 2026E increased 1% but cut 13% in 2027E. MBT earnings Julian Roxas ^^

seen to grow 5/4% in 2026/27E. For TMP, we cut vehicle sales volume in 2026/27E by ResearchPhilippineAnalystEquity Partners

12/20% which leads to 2026/27E TMP income growth of 0/5%. MBT and TMP combine julian.roxas@pep.com.ph

for 68% of GTCAP asset value and exceeds current market cap. The stock is trading at Russ Toribio ^^

its widest discount to NAV, more than 1.5 SD below mean. Reiterate Buy. See our GTCAP ResearchPhilippineAnalystEquity Partners

report: Banking to cushion slowdown in auto in 2026. russ.toribio@pep.com.ph

Ryle Daniel Mungcal ^^

Telecoms: Threat of MSCI deletion overwhelms TEL yield ResearchPhilippineAnalystEquity Partners