Index stays above 7,000

MANILA, Philippines — The local stock exchange has managed to stay above the 7,000-level to close the week, gearing up for whatever interest rate decision the US Federal Reserve makes.

The benchmark Philippine Stock Exchange index (PSEi) slipped by 1.82 points, or 0.03 percent, to settle at 7,022.85, while the broader All Shares index declined by 3.02 points, or 0.08 percent, to close at 3,788.63.

Reginal Capital Development Corp. head of sales Luis Limlingan said investors chose to stay on the sidelines awaiting the Fed’s decision on whether to cut rates.

The Federal Open Market Committee is scheduled to meet on Sept. 17 to 18 to firm up an interest rate decision now that inflation is coming down.

Investors believe the Fed will pursue a rate cut, by 25 basis points, considering the confidence gained in combating price pressures.

“Philippine shares wrapped up the day pretty much flat as everyone’s holding their breath ahead of the Fed’s interest rate call. Despite ending in the red though, the PSEi managed to hover above the 7,000 psychological line, with a 25 bps cut from the US Fed already baked into most traders’ expectations,” Limlingan said.

The PSEi saw P5.41 billion in shares change hands throughout the day, with the losers outpacing the winners, 96 to 88, while 62 issues remain unchanged.

Financials, services and property ended trading in the red, clearing the gains made by industrial, holding firms, and mining and oil.

Roxas and Co. Inc. was the biggest winner with an 11.89-percent increase in share prices, while Anchor Land Holdings Inc. was the biggest loser with a 24.91-percent drop.

Asian markets mostly rose yesterday after another healthy day on Wall Street as investors gear up for an expected US interest rate cut next week.

More data suggesting the Fed was winning the battle against inflation provided an extra kick for equities after another rollercoaster week that started with big losses fuelled by US recession worries.