Fitch Ratings on Thursday finally raised its assessment of the Philippines from a BB+ to a BBB- with a positive stable outlook. This is the upgrade we have all been yakking about since the beginning. Finally, it’s here! This is the very first time that the country got an investment rating. Meaning we are now credible debtors. 🙂
Simply put, with the upgrade, foreign investors are rushing in to our market to have a piece of the pie… now more than ever.
Foreign money flocked to the local market, as foreigners were net buyers to the tune of P1.35 billion.
Of course, this upgrade is super, super good news for our government. It’s a good reflection of its performance in the past years.
A lot of the credit for the country’s recent economic performance goes to the current administration led by President Aquino, which has been very effective in combating corruption and tax evasion. [read more]
Finally, the PH iGrade Upgrade and the Philippine Stock Market. On Thursday, the market and its investors had an early Easter celebration, with the PSEi closing to a new all-time high at 6,847.47 — the 24th new record high since the beginning of the year. Needless to say, it was the FR Upgrade that catalyzed the surge. When the news from Fitch Ratings broke out, the market was suddenly in a state of frenzy. See chart sketch below the list of companies in the PSEi.
I have also listed the composition of the PSE index on paper — this is my new watchlist, for the time being. With the upgrade, expect that some of these companies will be greatly and positively affected.