The latest Fitch ratings have raised the Philippine stock index congruent with Duterte’s economic plans, contributing gains from the mining and oil counters of one percent each as a result of the government’s investments in new markets.
The local bourse posted on Monday that mining/oil and financial sectors along with the industrial, holding firm, and property domains rebounded the stock index on higher ground following Fitch’s acknowledgment of country’s economic outlook despite the controversial and rampant war on drugs run by the government.
The Fitch Ratings upgrade on the Philippines’ sovereign credit is now leveled at BBB from BBB- in March after maintaining a positive, stable vantage since September 2015, roughly more than two years ago.
The new rating brings the country further up to investment-grade territory.
“This therefore should not come as a surprise and brings Fitch’s rating in line with Moody’s and S&P, which both rate the Philippines one notch above investment,” BDO Nomura noted.
On Monday, PSEi scored 53.87 points or 0.65 percent to close at 8,358.57, despite slow returns from the telecommunications sector, meanwhile services is on a decline by 1.37 percent due to Malacañang’s decision to bring in Chinese telecoms as a third telco player.
On a brighter note, the PSEi was led higher by the gains of the bank sector; BDO with 3.38 percent, while Metrobank, Metro Pacific, and DMCI all contributed with over 2 percent.
Value turnover for the same day amounted to P5.85 billion along with a net foreign selling of P7.6 million.
There were 114 winners, outnumbering decliners at 82, while 42 issues were unchanged.
Source: Inquirer Business
Photo courtesy of The Philippine Star
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