Local stocks soar on Fitch ratings upgrade report
LOCAL stocks rallied by 2.74 percent to hit unprecedented highs yesterday as the Philippine government bagged a much-coveted investment grade rating from Fitch.
The main-share Philippine Stock Exchange index gained 182.35 points towards its best ever finish of 6,847.47. A new intra-day peak was also hit at 6,873.89 close to the end of the session after news on the historic credit rating upgrade broke out.
While trading was mostly upbeat since the start of the week, Fitch’s rating upgrade provided a big catalyst before the markets pause for a long Lenten holiday break. Local markets are closed on Thursday and Friday and will resume only on Monday.
At 2:33 p.m. yesterday, Fitch Ratings announced the upgrade of the Philippines’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BBB-‘ from ‘BB+’ with a stable outlook, lifting Philippine debt grade out of “junk” status for the first time in history. This immediately triggered a new wave of buying at the stock market.
“This is the best news for us Filipinos and we are all part of this,” said Ismael Cruz, president of local stock brokerage IGC Securities.
early easter
Article continues after this advertisement“It’s an early Easter for the market,” said fund manager Astro del Castillo, managing director at investment management firm First Grade Finance. “It will definitely open the floodgates of investment, both FDI (foreign direct investment) and hot money. The most conservative funds are really just waiting for this feather in our cap before plowing money to our country.”
Article continues after this advertisement“It will now be a race among the bulls. It seems that the Philippines is no longer carrying its cross,” Del Castillo said.
Value turnover amounted to P12.92 billion. There were 110 advancers that edged out 44 decliners while 35 stocks were unchanged.
By counter, property got the day’s biggest boost (+3.88 percent) while the industrial, holding firm and services sectors all surged by over 2 percent.
The day’s biggest index gainers included MWC (+6.1 percent), ALI (+5.48 percent), SMIC (+5.29 percent), Meralco (+4.75 percent), Jollibee (+4.74 percent), URC (+4.44 percent), PLDT (+4.18 percent), BPI (+3.48 percent). /INQUIRER
