PSEi up 2.6% at end of morning trade

The PSEi soared by 2.6 percent as investors focused on blue chips—heavily-battered in the past weeks—amid the latest twist to speculations that the US Federal Reserve will continue its quantitative easing (QE) and not end its bond buying sooner than later.

 

The market has reached the 6,500-level as "investors focused on select large caps which were heavily sold in the past weeks," Grace Cerdenia, senior analyst at online brokerage 2TradeAsia.com, told GMA News Online.

 

"On drivers, Wall Street was up and most regional markets are up on expectations on the continuity of Fed's quantitative easing," she added.

 

Fed's $85-billion bond-buying stimulus program or QE is a measure to keep borrowing costs low and encourage investment, hiring and economic growth. The US central bank is set to hold a policy meeting on Tuesday and Wednesday (Wednesday and Thursday in Manila).

 

The bellwether PSEi soared by 165.02 points or 2.60 percent to 6,504.43 at the end of morning session. The broader-all shares index added 79.25 points or 2.01 percent to 4,019.43. All counters were in the green led by holding firms (+3.45 percent) and property (+2.46 percent).

 

Top index gainers during the morning session include Universal Robina Corporation at 5.45 percent, SM Prime Holdings Inc. at 3.77 percent, Ayala Corporation at 3.74 percent, Puregold Price Club Inc. at 3.34 percent and Alliance Global Group Inc. at 3.32 percent.

 

The market is expected to keep its current course through most of Tuesday after suffering heavy losses since it reached the 7,000-level in May, Cerdenia noted. — VS, GMA News