Excitement over a possible interest rate cut in the United States on Friday turned into anxiety on whether it would really happen, with the local bourse ending flat.
The benchmark Philippine Stock Exchange Index (PSEi) managed to hold on to the 7,000 level on the last trading day of the week, although it shed 0.03 percent, or 1.82 points, to close at 7,022.85.
Meanwhile, the broader All Shares Index was down 0.08 percent, or 3.02 points, to 3,788.63.
A total of 695.11 million shares worth P5.4 billion changed hands as foreigners made net purchases worth P183.98 million, stock exchange data showed.
READ: Most Asian markets rise as traders gear up for Fed rate cut
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said that the market’s flat performance came as “everyone’s holding their breath ahead of the [Federal Reserve’s] interest rate call.”
The American central bank’s next interest rate setting meeting is on Sept. 17 to Sept. 18, and it is expected to ease its monetary policy after four years due to the better-than-expected inflation rate in August.
Traders in the Philippine market also await the Fed’s next move since this is generally mirrored by the Bangko Sentral ng Pilipinas.
Lower interest rates typically boost consumer spending, as this means lower borrowing costs, particularly for those looking to loan from banks or buy property.
The conglomerates led the gainers with a 1.19-percent increase, buoyed by index heavyweights SM Investments Corp. (SMIC) and Ayala Corp.
DigiPlus Interactive Corp. was the most actively traded stock as it fell 14.80 percent to P17.04 per share.
Then there was International Container Terminal Services Inc., down 1.82 percent to P411.