Philippines share prices closed 1.34 percent higher on Wednesday, supported by growing optimism on the economic outlook and the possibility Japanese telecoms giant NTT DoCoMo will invest 300 million dollars in Philippines Long Distance Telephone, the dominant local carrier, dealers said.
Sharp gains in the regional markets following Wall Street's strong lead overnight also helped.
The Philippine Stock Exchange composite index rose 28.26 points at 2,138.05 after trading between 2,109.79 and 2,144.04. Volume was 447 million shares worth 1.15 billion pesos (22 million dollars.)
The broader all-shares index rose 17.51 points to 1,011.75.
Gainers beat losers 68 to nine, with 38 stocks unchanged.
The Philippine peso was trading at 52.407 to the dollar as of mid-day, reaching fresh two-and-a-half year highs.
"This rise is really buoyed by investors' vote of confidence in the economy, with the strong peso as an indicator, and expectations of credit rating upgrades for the country," said Rommel Macapagal of Westlink Global Equities.
"The general expectation is that 2006 will be a good year," said Mark Alan Canizares of Citiseconline.com. "Investor optimism is being anchored on full implementation of the new value-added tax (VAT) law come February, which they hope will bring about a fiscally-stronger national government," he added.
Philippine Long Distance Telephone was the most actively traded stock, rising 35 pesos to 1,850 pesos following the announcement that NTT DoCoMo intends to invest 300 million dollars into the company.
Rival Globe Telecom Inc gained five pesos to 745 pesos.
Ayala Land rose 25 centavos to 10.25 pesos while SM Prime Holdings gained 10 centavos to 8.20 pesos. Megaworld Corp advanced 10 centavos to 1.36 pesos.
San Miguel Corp A shares, limited to local investors, ended steady at 65 pesos. San Miguel Corp B shares, available to local and foreign investors, also closed unchanged at 89.50 pesos.