PSEi soars as Duterte declares war-torn Marawi liberated

Philippine shares soared to a new record high on the PSEi Tuesday, as the government declared Marawi City has been liberated from ISIS-linked terrorists after nearly five months.

"Buying sentiment may have been boosted with the news. The news could have boosted sentiment with safety concerns of doing business in the region slowly easing," Jeffrey Lucero, equity research analyst at RCBC Securities Inc., said.

The main PSEi gained 49.80 points or 0.59 percent to 8,497.74, breaking the previous record high of 8,447.94 registered last Friday. Financial markets were closed on Monday in view of a nationwide transport strike.

At one point in the session, the PSEi was up by 1.58 percent to breach the 8,500 level for the first time.

President Rodrigo Duterte went to Marawi earlier Tuesday, a day after government troops killed Abu Sayaff leader Isnilon Hapilon and Maute group leader Omar Maute during a hostage rescue operation.

"Ladies and gentlemen, I hereby declare Marawi City liberated from the terrorist influence. That marks the beginning of rehabilitation," the President said.

Lucero noted the liberation of Marawi may not have long-term impact on market fundamentals.

"Fundamentally, it does not have much effect on the PSEi as component stocks, particularly the heavyweights, have little exposure in the region," he said.

Lucero cited other factors that buoyed the market, including a rally in regional markets, while trading on Philippine Stock Exchange was suspended on Monday.

"The index is playing catch up with the rally of most regional markets yesterday. There's a huge pent up demand, as seen in the value turnover of the market today," he said.

Foreign funds bought P6.804 billion of shares during the session and sold P6.306 billion for a net buying position of P498.426 million.

More than 1.799 billion shares, valued at P11.763 billion, changed hands. Losers led winners, 121 to 88, and 42 issues were unchanged. — VDS, GMA News