The stock market declined Friday ahead of the speech of US Federal Reserve chair Jerome Powell on interest rate policy.
The Philippine Stock Exchange fell 38.08 points, or 0.5 percent, to P7,848.83 after bargain hunters capped early losses at the close of trading. Value turnover stood at P9.9 billion as losers overwhelmed gainers, 129 to 75, with 44 issues unchanged.
Megaworld Corp., the biggest lessor of office paces, slumped 8.5 percent to P4.84, while GT Capital Holdings Inc. of the Ty Group dropped 3.6 percent to P856.50.
PLDT Inc., the largest telecommunications firm, however, rose 2.3 percent to P1,130, while Kepwealth Property Phils. Inc. surged 49.2 percent to P18.32.
The rest of Asian markets stuttered Thursday but dealers remain wary following the release of Federal Reserve minutes that provided a mixed bag, with a speech by its chair at the end of the week the key point of focus.
Tokyo ended 0.1 percent higher, Shanghai edged up 0.1 percent and Sydney gained 0.3 percent.
Singapore put on 0.1 percent and Wellington gained 0.2 percent while Taipei was marginally higher.
But Hong Kong was 0.8 percent lower, while Seoul closed down 0.7 percent, Mumbai retreated 0.6 percent and Jakarta lost 0.6 percent.
Donald Trump provided some fresh hope for China-US trade talks by saying a deal will “probably” be made, and Wall Street ended with healthy gains thanks to blockbuster results from retailers that indicated strong consumer demand.
But investors in Asia were playing it cool ahead of Jerome Powell’s address to the central bankers’ symposium at Jackson Hole, Wyoming, on Friday which will be scrutinized for an idea of Fed interest rate policy.
Minutes from the bank’s July meeting—when it cut rates for the first time since the financial crisis—said policymakers were flexible and borrowing costs were not on a “preset course” despite trade uncertainty and weak global growth.
Stephen Innes of Valour Markets said the minutes “painted a convincing enough picture that the Feds will continue to go along with the market’s expectations for more cuts, as they will not want to tighten financial conditions, but at the same time not feel pressured to get ahead of the curve.”
While the global economy stutters and the China-US trade row rumbles along, equity markets have found some solace in expectations the Fed will continue to lower rates.
But OANDA senior market analyst Jeffrey Halley pointed out that the minutes showed two governors wanted a 50 basis-point cut, two did not want a cut at all and the rest settled on 25 basis points, which was eventually chosen.
“It is hard to see Mr Powell announcing or implying an aggressive new easing cycle in isolation when just a month ago, the (policy board) was clearly very split as well,” Halley said.
“The danger is most definitely that Chairman Powell disappoints.”
Crude prices edged up following a recent rally fueled by trade talks optimism and hopes for more rate cuts, though Halley warned they could quickly reverse course. With AFP