Market cheers news on Philippine credit rating upgrade

MANILA, Philippines — The stock market cheered the credit rating upgrade which the Philippines received yesterday, the first upgrade under the Duterte administration.

The benchmark Philippine Stock Exchange index (PSEi), the local stock market barometer, gained 53.87 points, or 0.65 percent, to finish at 8,358.57 while the broader All Shares gauge rose 26.59 points, or 0.55 percent, to end at 4,885.45.

Most counters ended in positive territory except for the services index which declined 21.99 points, or 1.37 percent, to end at 1,583.49.

Total value turnover was thin at P5.850 billion. Advancing stocks outpaced decliners, 91 to 63 while 84 issues were left unchanged.

Traders said the market cheered the positive news on the credit rating upgrade.

Fitch Ratings raised the Philippines’ sovereign rating by one level, seen as an approval of sort to President Duterte’s economic programs.

The debt watcher raised the country’s long-term foreign currency-denominated debt to BBB with a stable outlook, putting the Philippines ahead of Indonesia, one of its peers in the region.

Furthermore, Fitch said the economy is set to remain one of the fastest growing markets in Asia with growth of 6.8 percent next year and in 2019.