Philippines share prices closed 0.71 percent higher Friday on strong interest in select blue chips, dealers said. They said investors were taking positions ahead of the Supreme Court's expected ruling later this month on the legality of a new value-added tax law, the centre piece of the government's efforts to address a worrying reliance on debt-based financing.
The composite index added 14.40 points to 2,038.10, a new two-month high.
It traded between 2,023.70 and 2,049.65.
Turnover reached 1.15 billion shares worth 4.59 billion pesos (82.46 million dollars).
The broader all-shares index rose 5.33 points to 1,230.32.
Gainers outnumbered losers 55 to 25, with 42 stocks ending unchanged.
The peso traded at 55.66 to the dollar on average by midday.
Dealers said investors welcomed the generally positive first half profit results as an indication that select blue chips will remain profitable for the remainder of the year despite record-high oil prices and softening consumer demand.
"Despite the positive sentiment prevailing this week, the market may be ripe for correction in the coming sessions," Astro del Castillo of First Grade Holdings said.
Ayala Corp led the gainers, ending up 12.50 pesos to 325. Unit Bank of the Philippine Islands rose a peso to 51.50, while Ayala Land gained 10 centavos to 8.50 pesos.