MANILA -- News about Moody’s positive outlook on the Philippine economy allowed the Philippine Stock Exchange index (PSEi) to bounce back Wednesday, which also buoyed the peso during the day.
PSEi rose 2.17 percent, or 166.22 points, to 7,838.22 points a day after it fell on profit-taking.
This after Moody’s Investor Service, in a report dated July 31, 2018, said the Philippines’ low per capita incomes and low revenues-raising capacity compared to its similarly-rated peers are offset by the economy’s sustained expansion and gains in debt affordability.
The debt rater, which gave the domestic economy an investment grade rating of Baa2 with Stable outlook, projects continued robust growth for the Philippines due in part to the government’s greater focus on putting necessary infrastructure to sustain long-term expansion.
“Strong GDP growth could accelerate even further, especially if the government achieves higher investment spending,” it said.
With this the local stock market rallied and all the counters posted gains.
The broader All Shares rose by 1.64 percent, or 75.40 points, to 4,679.52 points.
The sectors were led by the Mining and Oil, which surged 4.99 percent and was tracked by the Holding Firms, 3.14 percent; Property, 1.64 percent; Services, 1.60 percent; Industrial, 1.54 percent; and Financials, 0.50 percent.
Volume reached 966.44 million amounting to Php7.2 billion.
Gainers led losers at 120 to 74 while 46 shares were unchanged.
The positive performance of the local equities market during the day was mirrored by the peso, which ended the trade at 53.08 to a dollar from its 53.095 Tuesday.
The local unit opened the day better against the greenback at 53.05 from 53.15 a day ago.
It traded between its opening level and 53.15 resulting to an average of 53.115.
Volume of trade reached USD642.13 million, lower than the USD670.81 million a day ago.
The currency pair is seen to trade between 53.00 and 53.20 Thursday. (PNA)
