Stocks closed lower Friday as investors waited on a speech later in the day by Federal Reserve chief Janet Yellen.
The Philippine Stock Exchange Index fell 9.05 points, or 0.1 percent, to 7,845.49 on a value turnover of P9.5 billion. Gainers, however, beat losers, 114 to 72, with 50 issues unchanged.
SM Prime Holdings Inc. of retail tycoon Henry Sy lost 1.5 percent to P29, while Ayala Land Inc. dropped 1.5 percent to P38.70.
Globe Telecom Inc., the second-largest telecommunications company, declined 2.3 percent to P2,080.
International Container Terminal Services Inc., the biggest port operator, advanced 4.3 percent to P84.50 on rising imports. The Philippine Statistics Authority said Thursday merchandise imports grew 15 percent to $6.85 billion in June this year from a year ago as strong domestic consumption and investment supported inbound shipments.
Meanwhile, with few catalysts to drive business this week, Yellen’s talk at the annual Jackson Hole symposium of global central bankers has hung over exchanges as traders hope for clues about the US economy and guidance on monetary policy.
Speculation has grown that the bank could lift interest rates as early as next month, although most experts say that is unlikely and that December or February would be safer bets.
“As is the case with most Fed speaking engagements, it will mainly involve deciphering verbal gymnastics while looking for a smoking gun,” Stephen Innes, senior trader at OANDA, said in a note.
“Traders will look for Dr. Yellen’s views on shifting global and domestic economic landscapes as well as the all-important cost benefit of maintaining the status quo.”
With an interest rate hike unlikely in the immediate future, the dollar is struggling to gain traction. In early trade the greenback was at 100.45 yen compared with 100.55 yen in New York late Thursday, while the euro edged up to $1.1298 from $1.1281.
The dollar also fell against most other higher-yielding currencies such as the Australian dollar, South Korean won, Indonesian rupiah and Malaysian ringgit.
Equity traders were on edge, with Japan’s Nikkei falling 1.2 percent, after another below-par inflation reading added to pressure on authorities to act on the economy as years of stimulus fail to have any serious effect on growth.
Sydney lost 0.5 percent and Seoul finished 0.3 percent off, while Wellington and Manila each shed 0.5 percent. With AFP