Index surges on new upgrade from Moody’s

MANILA, Philippines - The local benchmark index recovered from a five-day slump yesterday to close the week on a high note following a fresh credit upgrade from Moody’s.

The Philippine Stock Exchange index (PSEi) surged 2.15 percent or 152.11 points to finish at 7,224.21. The broader All Shares index likewise joined the climb as it improved 1.83 percent or 76.06 points at 4,238.28.

“The market finally broke its five-day losing streak after Moody’s upgraded the country’s credit rating to Baa2, and BSP maintained benchmark rates,” said Jason T. Escartin, investment analyst F. Yap Securities.

Moody’s Investors Service on Thursday hiked the country’s credit rating to Baa2 from Baa3 and assigned a stable outlook despite the slowdown in economic growth seen in the third quarter of the year.

The PSEi was upbeat right from the market’s opening tip, and remained aggressive as it clawed its way back above the 7,200 mark.

“Also, positive economic data coming from the US provided some support following the market’s rout in the previous session due to the continued decline in oil prices,” Escartin said.

All major indexes in Wall Street rallied behind an upbeat US spending data which indicated that the declining oil prices may provide some upside in its economy.

Locally, all counters ended in the positive territory, with three indices gaining more than two percent.