GAINS in the fight against terrorism helped propel the Philippine Stock Exchange index (PSEi) yesterday past the 8,500 mark for the first time amid trading before retreating to still close at a fresh peak, adding to impetus from investor optimism over looming third-quarter corporate earnings.

The PSEi yesterday hit a high of 8,586.73 and a low of 8,484.94, surging 49.80 points or 0.59% to close at 8,497.74 and mark its third straight trading day of gains, while the broader all-shares index advanced by 20.42 points or 0.41% to end at 4,958.53. Signs of weakness emerged, however, as the six sectoral indices were equally divided between those that gained and those that lost.

“The market’s move was a reflection of increased optimism, especially as the leaders of the insurgency in Marawi were finally eliminated,” PNB Securities, Inc. President Manuel Antonio G. Lisbona said in a mobile phone message on Tuesday.

“The liberation of Marawi also gives credibility to the President’s strategy and action during the conflict and should enhance investor confidence even further.”

In remarks in the battle-scarred Marawi City yesterday after the government announced on Monday the deaths of two leaders of Islamic State (IS)-inspired militants who had tried to take over the city last May 23, President Rodrigo R. Duterte said: “I hereby declare Marawi liberated from the terrorists.” The military brass, however, clarified that government forces were still mopping up 20-30 militants, including Malaysian Mahmud Ahmad, who has been tipped to take over IS’ Southeast Asian leadership after the death of Isnilon Hapilon.

Regina Capital Development Corp. Managing Director Luis A. Limlingan said via text that investors also expected generally favorable third-quarter results of listed companies that could “set the tone for trading and determine whether the lofty levels of the equity market are justified.”

Holding firms jumped 142.77 points or 1.65% to finish at 8,777.40, financials added 6.94 points to 2,071.36, while services rose by 5.78 points or 0.34% to end at 1,707.38.

Mining and oil dropped 126.50 points or 0.92% to close at 13,547.72, industrial fell by 84.43 points or 0.76% to 10,977.37, while property inched 0.41 point or 0.01% down to 3,954.33.

Stocks that declined outnumbered those that gained 121 to 88 while 42 issues were unchanged.

Trading volume doubled to 1.80 billion stocks worth P11.76 billion from Friday’s 826.16 million worth P9.56 billion. Markets were closed on Monday due to a nationwide transport strike.

Foreigners remained buyers for a third straight trading day, even as net purchase dropped by a fourth to P498.43 million from Friday’s P651.18 million.

Among Tuesday’s most active stocks, MacroAsia Corp.; SM Investments Corp.; Security Bank Corp.; GT Capital Holdings, Inc. and SM Prime Holdings, Inc. led those that gained, rising 4.77%, 2.94%, 2.69%, 2.46%, and 2.19% respectively. — Janina C. Lim with AFP

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