Philippines stocks rose 1.2 percent on Wednesday, lifted by bargain-hunting on select blue chips led by food and beverage giant San Miguel Corp and leading conglomerate Ayala Corp.
Analysts said a Supreme Court ruling that a poll automation contract is illegal, which threatens to delay national elections on May 10, may have tempered the market's rise.
The market was kept afloat by rotational buying as some investors took profits on telecom heavyweights PLDT and Globe Telecom, which fuelled the market rally at the start of the year.
"Market sentiment at the moment favours the bulls, bolstered by expectations of strong earnings growth for certain blue chips," said RCBC Securities stocks analyst Edwin Gil Mendoza.
The main index ended 18.13 points higher at 1,525.30 points. Value turnover rose to 1.513 billion pesos ($27.4 million) from Tuesday's 1.14 billion pesos.
Gainers beat losers 35 to 28 and there were 36 stocks unchanged.
A shares of San Miguel, Southeast Asia's largest food and beverage firm, rose 50 centavos to 56 pesos. Its B shares, which are open to foreigners, jumped 3.76 percent or 2.50 pesos to 69 pesos.
Ayala Corp, the Philippines' largest conglomerate with interests in telecommunications, property, and banking, finished 3.45 percent or 20 centavos higher at 6.0 pesos.
Analysts said the market will likely drift in the near term as profit-taking on some issues prevents a sharper rise and as players wait for political developments.
"What could hinder any strong market up-move would be volatility in other international markets and any political disturbance that could provide more uncertainties over the smooth transition of government after the May polls," Mendoza said.
Philippine Long Distance Telephone Company (PLDT), the session's most active share, closed 15 pesos lower at 920 pesos.
Globe Telecom Inc, which is jointly owned by Ayala Corp and Singapore Telecommunications, shed 10 pesos to 900 pesos.
B shares of power distributor Manila Electric Company, which are open to foreigners, fell 5.48 percent or two pesos to 34.5 pesos.