Index hits new high on Fitch upgrade

MANILA, Philippines - The Philippine Stock Exchange index (PSEi) hit a new high yesterday on Fitch Ratings upgrade on the Philippines’ credit ratings.

The main composite index rallied for the fifth straight session, surging 2.74 percent or 182.35 points to settle at 6,847.47. It was the biggest single day gain this year for the main index, which posted a new intraday high at 6,873.89.

The broader all shares index climbed 1.70 percent or 70.60 points to 4,234.31.

“It was a resurrection day on Holy Wednesday for the stock market,” Astro C. del Castillo, managing director of First Grade Finance Inc., said in a phone interview.

“This will fuel more investments in the country, both for hot money and foreign direct investments,” Del Castillo said.

Fitch Ratings yesterday upgraded the country’s  sovereign ratings to investment grade, citing “resilient economic growth” and fiscal reforms.

Del Castillo said the market was surprised by the earlier than expected upgrade.

Wall Street and Asian markets were also in the positive territory as the US economy showed a rebound through the stronger demand for US-made durable goods.

The Dow Jones industrial average added 0.77 percent or 111.90 points to another record at 14,559.65 while the broader Standard & Poor’s 500 index rose 0.78 percent or 12.08 points to 1,563.77.