Philippines share prices closed 0.48 percent higher on Thursday with investors buying into select stocks on the back of a strong peso, dealers said.
They said light volumes mirrored a generally cautious mood, with many investors on the sidelines watching developments in the political arena as lawmakers re-opened inquiries into allegations of election cheating against President Gloria Arroyo.
The Philippine Stock Exchange composite index rose 10.18 points to the day's high of 2,113.60. It hit a low of 2,098.89. Volume was 676 million shares worth 1.7 billion pesos (31.4 million dollars). Losers beat gainers 41 to 34, while 49 stocks were unchanged.
The peso rallied to a 28-month high of 53.68 to the dollar, aided by the continuing flow of remittances from Filipinos working overseas.
ING Financial Markets Research said in a note that the peso looks set to end the year at 53.50 to the dollar, given strong inflows, which could push the Philippine currency up to 52 levels next year.
"The optimism in the foreign exchange market spilled over into equities," said Lawrence de Leon of Accord Capital Equities.
He said some investors may have also begun window-dressing their portfolios ahead of the new year.
Dealers said the peso's strength is good news for companies with dollar-denominated debt, such as the Philippine Long Distance Telephone (PLDT).
PLDT, the most actively traded stock, rose 5.00 pesos to 1,790.
Ayala Land Inc was up 30 centavos at 9.70 pesos. Food and beverage conglomerate San Miguel Corp's A-shares, limited to Filipinos, fell 50 centavos to 64.00 pesos. Its B-shares, available to Filipino and foreign investors alike, rose 1.00 peso to 87.00 pesos.