Share prices gained in a midday rally fueled by investor reaction to news that the Philippines has won an investment grade rating from a South Korean credit ratings firm, followed by the World Economic Forum’s (WEF) Global Competitiveness index showing the country moved several notches higher.
By the noon pause in trading, the Philippine Stock Exchange index (PSEi) was up 96.44 points or 1.36 percent at 7,203.00, while the broader All Shares index was 43.20 points or 1.03 percent higher at 4,252.02.
The rally snapped the market’s two-day decline, seen on Monday and Tuesday.
Jason Escartin of F. Yap Securities said the market welcomed the investment grade rating of BBB- assigned to the Philippines by South Korea’s National Information and Credit Evaluation (NICE), as well as the jump by several notches in the Philippine ranking in the WEF Global Competitiveness lineup.
Despite the spike in share prices, Escartin said trading reflected remaining caution ahead of the release this week of the August inflation numbers, which could drive up interest rates.
The upside might be tempered “by expectations of higher consumer prices with the August inflation announcement this Friday,” Escartin said. KRISTYN NIKA M. LAZO