Index bucks gloomy foreign trend

MANILA, Philippines - Share prices managed to post slight gains for the second straight day yesterday, bucking the gloomy trend in global markets.

The Philippine Stock Exchange index (PSEi) added 0.11 percent or 7.22 points to settle at 6,857.48, while the broader all shares index rose 0.16 percent or 6.68 points to settle at 4,305.72.

“The market traded sideways as the main index retests the 6,850 level mimicking what happened last week,” Freya Natividad, investment analyst at brokerage firm 2Trade-Asia.com.

Natividad said the local market focused on select corporate news, allowing the benchmark index to eke out gains amid declines in overseas markets.

Stocks in Asia and Wall Street fell anew on the back of fears over slower global growth.

The Dow Jones Industrial average declined 0.9 percent or 138.19 points to 14,618.59 while the broader Standard & Poor’s 500 index retreated 1.4 percent or 22 points to 1,553 on weaker prices of technology, commodity, energy and bank stocks.

Locally, counters were mixed, with the advancers led by property firms that closed 0.56 percent or 15.42 points higher at 2,787.98 while the decliners were paced by mining and oil that dropped 0.78 percent or 162.70 points to 20,703.13.

Turnover value hit P11.35 billion compared with P49.05 billion on Wednesday that was boosted by the block sale of P37-billion worth of shares of LT Group Inc.Locally, counters were mixed, with the advancers led by property firms that closed 0.56 percent or 15.42 points higher at 2,787.98 while the decliners were paced by mining and oil that dropped 0.78 percent or 162.70 points to 20,703.13.

Turnover value hit P11.35 billion compared with P49.05 billion on Wednesday that was boosted by the block sale of P37-billion worth of shares of LT Group Inc.

Source: By Neil Jerome C. Morales (The Philippine Star) | Updated April 19, 2013 - 12:00am

A first in history: PH gets investment grade

AFP News/Noel Celis - General view shows of Makati financial district of Manila, pictured at night on January 19, 2010. The Philippines makes its biggest bet this weekend in a high-stakes bid to join the world's elite gaming destinations, with the launch of a $1.2-billion casino on Manila Bay 

The Philippines bagged a landmark vote of confidence as global debt watcher Fitch raised the country's credit rating to investment grade Wednesday.

For the first time in history, the Philippines is deemed as an econmy where it is safe for global investors to pour in capital.

Fitch Ratings said the country's long-term foreign-currency issuer default rating (IDR) is now up to BBB- from BB+. The long-term local-currency IDR has likewise been raised to BBB from BBB-.

An investment grade is seen to lower the Philippines' borrowing cost, thereby increasing opportunities for the government to save.

Source: 

By Kim Arveen Patria | Yahoo! Southeast Asia Newsroom – Wed, Mar 27, 2013

Peso climbs back to 40-to-dollar level after PH’s credit rating upgrade

AFP FILE PHOTO

MANILA, Philippines—The peso strengthened back to the 40-to-a-dollar territory on Wednesday as the euphoria over the upgrade in the Philippines’ credit rating to investments status superseded concerns over the unfavorable situation in the euro zone.

Reversing the previous day’s weakening to the 41 level, the peso inched up to close at its intraday high of 40.8 against the US dollar on Wednesday, up by 27 centavos from the previous day’s finish of 41.07:$1.

Intraday high low settled at 41.05:$1.

The weakening of the peso on Tuesday to the 41-to-a-dollar level happened as financial markets worldwide expressed concern over the debt woes in Cyprus that is seen to pose a significant challenge to efforts to resolve the crisis in the entire euro zone.

The capital market, however, left behind the worries of the previous day and bought peso-denominated assets on Wednesday in response to the upgrade of the Philippines’ credit rating.

Strong appetite for the pesos lifted the volume of trade to the $1-billion mark to hit $1.14 billion from $935.76 million previously.

The significant appreciation of the peso came following the release of a report that international credit rating firm Fitch Ratings raised the credit rating of the Philippines from BB+ to BBB-, or from one notch below investment grade to the minimum investment grade.

Fitch said the decision was based on encouraging macroeconomic fundamentals, including the country’s robust growth rate, rising foreign-exchange liquidity, declining debt burden, and benign inflation.

The international credit watchdog said the Philippines has shown resilience throughout the global economic crunch. The Philippines grew by 6.6 percent last year, registering one of the fastest growth rates during the period.

Traders said the upgrade in the country’s credit rating formalized the favorable outlook on the Philippine economy.

Source: By Michelle V. Remo / Philippine Daily Inquirer

8:39 pm | Wednesday, March 27th, 2013