NEWS Reddit Mentions | ChartExchange

#Happy Monday, Barkada --
#The PSE lost 2 points to 6377 ▼0%
Thank you to all the readers who wrote in to support my take on BPI and its fees announcement. Lots of fantastic off-the-record discussion from people with a great deal of first-hand knowledge and experience.
Thank you all!
#▌[In today's MB](https://mailchi.mp/merkadobarkada/chinabank-crashes-after-pse-internal-document-leak):
- **COMING UP: The week ahead**
- PH: ACPB4 offer period end
- PH: KPH tender offer end
- PH: Mid-week holiday
- INT'L: US May inflation
- INT'L: US jobs
- **PH inflation drops to 1.3% for May**
- YTD inflation now below BSP range
- So... big cuts, yes?
- **Leaked doc sparks PSEi speculation**
- Potential PSEi inclusion changes
- CBC and SMC hit, AP and WLCON pump
#▌[Daily meme](https://i.imgur.com/KCteKwS.png) | [Subscribe (it's free)](https://mailchimp.us12.list-manage.com/subscribe?u=925d69480ecfc297864a79dc6&id=17742706f1&utm_source=mb) | [Today's email](https://mailchi.mp/merkadobarkada/chinabank-crashes-after-pse-internal-document-leak)
#▌Main stories covered:
>- **[COMING_UP] The week ahead...** Today is the 160th day of 2025. We’re 30% of the way through June, and we’re 77% of the way through Q2. The year is 44% complete. The PSEi is down 2.3% YTD, but it’s up 0.5% over the past week, and it hasn’t been back in the 5000s in almost two months. It’s been seven months since we’ve been in the 7000s, but given everything that’s going on I’m ok with just not being in the 5000s for now.
> **PH:** We start the week with an ending: the end of the ACPB4 offer period. Then on Wednesday we get another ending, the end of the KPH tender offer period, and on Thursday, it's a non-trading day in recognition of **Independence Day**.
> **International:** I’m moderately interested to see the US CPI/inflation data for May, which will be released Wednesday morning in the US (overnight between Wednesday and Thursday for PH-based investors). I’m also moderately interested to see the initial jobless claims report that will come out Thursday morning in the US (between Thursday and Friday our time), as the last report exceeded expectations (247,000 actual vs 236,000 expected).
> - ***MB:*** I’m writing this while watching Trump and Musk go through their messy breakup, with Musk threatening to oppose Republicans that support Trump’s “Big Beautiful Bill” in upcoming elections, Trump counter-threatening to eliminate government subsidies to Musk’s various companies like Tesla and SpaceX, and Musk upping the ante with a post about Trump’s presence in the Epstein Files. It’s really one of the more wild “F5 F5 F5” type situations that I’ve seen on Twitter in quite some time. Does it mean anything for the markets? Well, it meant something for Tesla stock (down). It might even be good for the market if it somehow distracts Trump from doing anything even dumber on the global stage. It might be terrible if he tries to distract everyone from this failing relationship with something designed to be crazy.
>- **[NEWS] PH Inflation drops to 1.3% for May...** The **Philippine Statistics Authority** (PSA) [[link](https://www.pna.gov.ph/articles/1251531?__cf_chl_tk=Raj8QHTNuBjCbAeBkdvIvJLTFIFsRiAR_UjVy98b7Ow-1749172126-1.0.1.1-rEHwxHxhNjDUXjbUPEkrD9OFI32oAbulds0Y168ndnM)] revealed the year-on-year increase in the Consumer Price Index (CPI) for May was just 1.3%, down from the 1.4% y/y recorded in April. It was the lowest monthly price increase since the 1.2% y/y increase recorded for November 2019. The PSA said that the year-to-date inflation rate was at 1.9%, which is below the administration’s targeted 2% to 4% range. The BSP predicted that May’s inflation print would come in between 0.9% and 1.7%.
> **BSP response:** The BSP called this a “manageable inflation environment” with “continued easing of commodity price pressures”. The BSP said that it would “reassess its monetary policy stance at the next meeting of the Monetary Board on 19 June 2025.” Previously, BSP Governor **Eli Remolona** said that there’s “room” for two cuts in 2025.
> **The peso:** The Philippine Peso has been performing relatively well relative to the US Dollar, which some analysts think may give the BSP the ability to cut rates this June, even if the US Federal Reserve elects to pause. Normally, the BSP cutting rates faster than the Fed could degrade the value of the peso relative to the dollar, but the peso’s relative strength could give the BSP the ability to make a cut without pushing the exchange rate into psychologically-challenging territory.
> - ***MB:*** **Martin Romualdez**, the Speaker of the House and cousin to **President Marcos**, implied that a slower increase in the price of goods was somehow “relief” that regular people would “feel”. I disagree. Prices still went up. The rate of their increase is down, but prices are still at or near all-time highs, and the fact that prices didn’t suddenly jump even more than we thought isn’t relief. I don’t really “feel” prices not continuing to set all-time highs. People would definitely feel if, for example, the BSP aggressively cut rates to reduce their borrowing costs on loans that were taken out before the inflation crisis hit.
>- **[NEWS] Leaked document of PSE’s proposed changes to PSEi spooked market...** A leaked internal document from the PSE [[link](https://insiderph.com/stock-traders-move-on-leaked-draft-pse-clarifies-index-rule-changes-not-set)], which appears to be soliciting feedback from market participants on proposed changes to the eligibility criteria for inclusion to the 30-stock PSEi, caused considerable volatility on Friday. The document was a simulation of how the makeup of the PSEi would change under a certain configuration of the proposed rules, and the stocks that were shown in that simulation to be excluded from the index (**Chinabank** [CBC 65.70 ▼9.1%; 405% avgVol] and **San Miguel** [SMC 79.00 ▼0.6%; 80% avgVol]) suffered massive losses. The stocks that were shown to be eligible under the proposed rules (**Aboitiz Power** [AP 39.60 ▲3.9%; 364% avgVol] and **Wilcon** [WLCON 7.31 ▲0.7%; 0% avgVol]) shot up considerably. The PSE said that it was only soliciting comments on proposed changes from “key stakeholders (e.g., fund managers and certain foreign and local brokers)”, and that, “only after such comments are received and evaluated will PSE consider if there is even a need to change its present index rules.”
> - ***MB:*** One of the proposed changes (I could only find this tweet summarizing it [[link](https://x.com/brian_juat/status/1930497842763952452)] is lowering the public float size from 20% to 15% for companies with a marketcap of greater than ₱120 billion. Not sure if this is some kind of bending of the knee by the PSE to the Zobel Family’s interest in listing GCash with a smaller float while still preserving the opportunity for the stock to perform its way into PSEi inclusion, or if it’s just a short-sighted idea to juice listing activity. Studies show that market health is improved by higher public float ownership levels. At the end of the day, if this is something the PSE is considering just so that it can maximize revenue, maybe we need to ask ourselves: why? What’s the point of operating the exchange in this manner, if doing so just milks the capital market at the expense of the health of that market? Perhaps this is something the new SEC Chairman can weigh in on, as it would seem (IMO) that the PSE is about to commit an unforced error.
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