Local stocks buoyed by good news

Local share prices snapped a four-day losing streak on Wednesday as Wall Street’s euphoria lifted the main index back above the 4,200 level.

Market sentiment will likely continue to improve in the coming days following the ratings upgrade by international debt watcher Moody’s Investor Service, which finance department officials said would help bring down borrowing costs and attract investments.

The benchmark Philippine Stock Exchange Index (PSEi) gained 61.11 points, or 1.47 percent, to close at 4,201.48, while the all shares index climbed 0.76 percent to 2,948.35.

Sub-indices were all in the green led by mining and oil shares, which rose an average of 3.7 percent, helping lift the main index from its Tuesday close—the lowest point reached since April.

The day’s 83 advancers outnumbered decliners more than two to one, leaving 38 issues unchanged.

The day’s trading was influenced heavily by gains in the US as the Dow Jones Industrial Average gained 1.03 percent to 12,076.11 points, following the release of better-than-expected retail sales numbers in the world’s largest economy.

On the local front, Moody’s on Wednesday announced that it had upgraded the country’s sovereign debt rating by one notch to Ba2, which is still below investment grade, citing the state’s improving fiscal situation.

“We are now one step closer to our goal of attaining investment grade rating, which is crucial in further lowering our borrowing costs and attracting more investments,” Finance Secretary Cesar Purisima said.—Paolo G. Montecillo