PSEi breaches 8,500 as market cheers likely end to Marawi siege

Philippine shares breached the 8,500 level on the benchmark PSEi as investors cheered recent developments in war-torn Marawi and benign inflation in the US.

The market is looking at what has happened Marawi City, where government troops eliminated leaders of ISIS-linked terrorists, Aniceto Pangan, equities trader at Diversified Securities Inc., said

"Somehow, this is indicative of the ending of the ongoing crisis in Marawi ... It will provide more stability in the country," he said.

In a speech in Marawi City, President Rodrigo Duterte declared Marawi City liberated from terrorists.

As of 2:09 p.m., the PSEi was up 131.30 points or 1.58 percent to hit 8,581.24.

It gained 101.88 points or 1.21 percent to 8,549.82 as of the noon break, and the broader All Shares advanced by 39.22 points or 0.79 percent to 4,977.33.

"Last Friday, US inflation came out and it was benign. Secondly, retail sales were also below estimate, indicative that the US will not go on aggressively increasingly interest rates," Pangan noted.

"Inflation data on Friday showed September consumer prices came in below expectations," a report by Reuters said. — VDS, GMA News