Positive credit outlook sends stocks higher

The stock market extended its winning ways to close the week on a higher note following S&P Global Ratings’ positive credit outlook for the Philippines.

“It’s just the market reacting to the positive sentiments from the S&P. It triggered bargain hunting to the 7,500 level,” said Jonathan Ravelas, chief market strategist at BDO.

The Philippine Stock Exchange index soared 103.60 points, or 1.36 percent, to finish at 7,721.02, while the broader All Shares index gained 53.78 points, or 1.16 percent, to settle at 4,671.83.

“The market sentiment was mainly driven by S&P credit upgrades to positive from stable due to tax reform and fiscal policies supporting robust economic growth,” IB Gimenez Securities Inc. head of research Joylin Telagen said.

Abroad, US stocks closed higher on Thursday with major indexes up by one percent, while European markets also finished stronger.

Asian stocks were also higher following uptrend in Wall Street.

“The same was the case for the Philippines, naturally,” said Regina Capital Development Corp. business development head Luis Limlingan.

All counters ended in positive territory for the first time this week, three of which increased by more than one percent.

Holding firms jumped by 2.65 percent, followed by mining and oil and industrial counters which picked up 1.28 percent and 1.19 percent, respectively.