Analysts said that assurances by government officials that the Philippines was not technically in a fiscal crisis, despite a statement that is was by President Gloria Macapagal Arroyo, helped calm investors. The main index finished 13.25 points or 0.86 percent higher at 1,561.33 points.
"Players are hunting for bargains. The economic managers said we are not technically in fiscal crisis despite President Arroyo's earlier statement. It was a good alarm actually," said Eagle Equities President Joey Roxas.
Analysts said Arroyo's statement may have been a shock tactic aimed at piling pressure on congress to pass a series of new tax steps that are the centrepiece of her plans to wipe out the deficit within the six-year term she won in May elections.
Arroyo, a US-trained economist, wants congress to approve eight measures aimed at reversing a slide in tax revenue to around 12 percent of gross domestic product from around 17 percent in 1997.
Value turnover rose 67 percent to 1.01 billion pesos ($18 million) from Wednesday's 602.07 million pesos, as gainers beat losers 44 to 24.
Globe Telecom, the country's second-largest phone firm which is jointly owned by conglomerate Ayala Corp and Singapore Telecommunications, jumped 1.80 percent or 15 pesos to 850 pesos, accounting for 46 percent of total trade. Globe shares had lost more than 4 percent in the previous five sessions. Ayala Corp, the Philippines' largest business group, rose 1.92 percent or 10 centavos to 5.30 pesos. Ayala Land Inc, the country's largest property firm, surged 3.85 percent or 20 centavos to 5.40 pesos after it disclosed late on Wednesday it had sold its 28 percent stake in the local Makro retail chain for 1.02 billion pesos to focus on its core business.
Pilipino Telephone Corp (Piltel), the country's third-largest mobile phone firm, ended 4.84 percent or 12 centavos higher at 2.60 pesos.