Philippine Markets: 28 September 2011

28 September 2011

USD/PhP:    43.54( As of 12:00pm)   PSEi:       3883.64           + 164.42
USD/JPY:    76.57             PFINC:              875.64          +
3.68
EUR/USD:    1.3555                  BDO:                 48.00          +
1.75
GBP/USD:    1.5626                  BPI:           53.65          +
2.65
PDSTF3M:    3.6229                  MBT:           61.95           +
1.85
Prices as of  4:00pm                Source: Bloomberg, Reuters


Philippine Peso Gains on Optimism Greece Will Avert Default
By Karl Lester M. Yap

(Bloomberg) -- The Philippine peso advanced the most in three months as
signs of progress in tackling Europe’s debt crisis helped revive demand for
emerging-market assets. Government bonds rose.

Greek Prime Minister George Papandreou won support in parliament yesterday
for a new property tax to help raise revenue and narrow the nation’s
budget deficit.
German Chancellor Angela Merkel said her nation would help Greece meet
the terms of its bailout.

“People are taking the recent developments in Europe positively,” said
Antonio Espedido, a treasurer at China Banking Corp. in Manila.
“There’s more demand for riskier assets, which is benefiting emerging
markets like the
Philippines.”

The peso gained 0.9 percent to 43.495 per dollar as of 10:26 a.m. in
Manila,
it biggest gain since June 21, according to Tullett Prebon Plc. Currencies
in
Asia’s developing nations strengthened yesterday, when financial markets in
the
Philippines were shut yesterday due to a typhoon.

The yield on the government’s 5.875 percent bonds due January 2018
dropped 10 basis points, or 0.1 percentage point, to 5.4 percent,
according to Tradition Financial Services.






BDO UNIBANK, INC.

Jonathan Ravelas
Chief Market Strategist
(632) 858-3145