The Philippine Stock Exchange continued to see lackluster trading Friday amid a lack of market catalysts.
The bellwether Philippine Stock Exchange Index (PSEi) inched up by 3.71 points, or 0.06 percent, to close the week at 6,281.58. The broader all shares index climbed 2.44 points, or 0.06 percent, to 3,737.58.
The peso also saw a minor gain, closing at 56.95 to the U.S. dollar on Friday, up from 56.96 on Wednesday.
Analysts said investor sentiment was weighed down by the hawkish stance in the U.S. Federal Reserve’s minutes, which indicated that most officials still see inflation as a risk, possibly delaying further rate cuts.
Japhet Tantiangco, research head at Philstocks Financial Inc., said hopes for a rate cut by the Bangko Sentral ng Pilipinas could lift the local bourse from its sideways movement.
The property sector led gains, increasing by 1.02 percent on possible rate cuts. The industrial sector also rose 0.90 percent, and mining and oil climbed 0.47 percent.
In contrast, holding firms dropped 0.80 percent and services fell 0.35 percent.
Trading was thin, with a value turnover of P5.84 billion. Foreign investors were net sellers, with outflows of P721.9 million.
Century Pacific Food Inc. was the day’s top gainer, climbing 5.5 percent to P34.50, while DigiPlus Interactive Corp. was at the bottom, declining by 5.11 percent to P26.90.
Markets in Asia and Europe diverged Friday ahead of a pivotal speech by the US central bank chief, expected to shed light on possible interest rate cuts in the world’s top economy.
Recent days have seen cautious trading as investors parse a mixed outlook for the global economy, beset by worries over inflation even as a boom in tech—especially artificial intelligence—continues.
US Federal Reserve Chairman Jerome Powell is set to deliver remarks during an annual gathering of central bankers in Jackson Hole, Wyoming on Friday, a key event for observers weighing the chances of a rate cut at a September meeting of policymakers.
Powell has come under intense public pressure this year from President Donald Trump to lower rates — an unusual political intervention at the independent central bank.
Stock markets in Asia and Europe were split across mostly narrow ranges on Friday afternoon, roughly five hours before Powell’s speech.
Tokyo’s Nikkei index closed up 0.1 percent, an improvement from Thursday’s 0.7 percent drop.
Japan announced Friday that core inflation had eased to 3.1 percent in July from 3.3 percent the previous month — still above its central bank’s two-percent target and boosting expectations of an October rate hike.
Meanwhile, Shanghai’s main index finished up 1.5 percent, breaking 3,800 points for the first time in a decade as shares in Chinese semiconductor firm Cambricon surged.
Benchmarks in Hong Kong, Seoul and Bangkok also rose, while Sydney and Taipei were down.
Morning trading in Europe saw shares edge down in London and Frankfurt. Paris was up slightly.
After a shaky few days on Wall Street, Asia “should act as a safe harbor while the Fed’s credibility is under the spotlight”, said Chris Weston, head of research at Pepperstone, in a note.
Still, “hesitation to push risk higher will remain”, he said, adding that there is “a very low probability” of Powell calling explicitly for rate cuts in his speech later in the day.
Also weighing heavily on investors’ minds is the potential for a peace deal in Ukraine more than three years after Russia’s invasion.
Trump on Thursday set a two-week time frame for assessing peace talks between Moscow and Kyiv, following days of high-stakes diplomacy that saw him meet with Russian and Ukrainian counterparts in person, as well as several European leaders.
Observers have been speculating lately about the impact on oil markets of the possible lifting of sanctions on Russia, a major producer.
Oil prices were up narrowly on Friday afternoon, adding to previous gains made over recent days.
