Philippines share prices closed 1.89 percent higher on Thursday as the market snapped back on bargain-hunting after hitting six-month lows Wednesday amid concerns over the future of President Gloria Arroyo, dealers said. They said some investors looked past Arroyo's problems to take positions in companies expected to report strong first half earnings but overall, quick profit-taking is likely given the shaky political environment and the pressure on the peso.
The Philippine Stock Exchange composite index rose 34.28 points to 1,847.32 after trading between 1,813.04 and 1,851.62. Turnover was 573.36 million shares worth 1.5 billion pesos (26.45 million dollars).
The broader all-shares index rose 14.10 points to 1,135.85.
Gainers beat losers 58 to 16, with 33 stocks steady.
"Investors bought oversold stocks although some of them were looking for quick profits given the volatile state of the market," said Mark Alan Canizares of Citiseconline.com.
The equities market as well as the peso have fallen as the opposition has stepped up calls for Arroyo to resign following allegations that she cheated her way to victory in last year's election.
A Supreme Court ruling halting the collection of a newly-passed expanded value-added tax (VAT) have compounded Arroyo's worries and casts doubt on the government's efforts to remedy a chronic budget deficit.
Philippine Long Distance Telephone was the most active stock, adding 35 pesos to 1,565. Bank of the Philippine Islands advanced 50 centavos to 45.50 pesos.
Ayala Corp gained 7.50 pesos to 280 and unit Ayala Land rose 40 centavos to 7.40 pesos. SM Investments fell six pesos to 249 while subsidiary SM Prime gained 10 centavos to 7.30 pesos. San Miguel A was unchanged at 60 pesos and San Miguel B gained 50 centavos to 92 pesos.
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