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The bellwether Philippine Stock Exchange index was up by 1.63 percent or 46.17 points to finish at 2,908.50 on Friday, while the all share index climbed by 1.22 percent or 22.05 points to 1,828. 37.
All six counters closed higher, led by mining and oil shares.
Trading was above average where a total of 2.44 billion shares valuing 5.35 billion pesos (1.12 billion U.S. dollars) were exchanged. Foreign investors were net buyers at 595 million pesos (12.46 million U.S. dollars).
Market breadth was positive where a total of 106 stocks gained while 21 shares lost and 56 issues were unchanged.
Analyst Jun Calayccay of local brokerage Accord Capital Equities Corp. said the Philippine market has a lot to thank the U. S. market which posted its best performance in three months. Blue chip heavy the Dow Jones industrial average gained 2.05 percent or 199.89 points to close at 9,962.58 after the government showed that the U.S. economy grew at 3.5 percent annualized rate during the third quarter.
Likewise, the Standard and Poor's 500 index and tech-heavy the Nasdaq composite index also closed higher.
"The local market managed to post its best performance this week on Friday contrary to most investors' expectations that the local market will go down ahead of the long weekend. Thursday's performance has also opened a window for investors to make better positions," Calaycay said.
Friday's surge prevented the Philippine market from posting a huge loss after its lackluster four-day performance. For the week, the market has lost only 0.83 percent week-on-week but managed to post a month-on-month gain of 3.14 percent.
Calaycay said investors positioned on the blue chips ahead of the release of the corporate results. Still, the long weekend, the analyst said, has prompted some investors to lock-in their gains which prevented the Philippine market from posting huge rallies.
The local market reached an intra-day high of more than 60 points up before investors locked in their gains.
"Investors are not yet willing to ride out the volatility. They are waiting for the sustainability of strong rallies such as this one but I am wary about that happening. The market still lack the conviction to go up," he said.
Calaycay blamed the two tropical storms that hit the country, adding that if not for them, the market might have already opened the fourth quarter higher. Nonetheless, the analyst said he is optimistic that the local market is already in its uptrend.
"Although the outlook is already positive, investors still want to make sure that the market's rallies are sustainable. For now, they are still cautious," he said.
Stocks in the 30-company index closed higher.
Heavyweight Philippine Long Distance Telephone Co. went up by 1. 16 percent to settle 2,595 pesos (54.36 U.S. dollars).
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