The composite index rose 10.02 points to 1,927.49 after trading between 1,917.47 and 1,933.36. Turnovers were 409.76 million shares worth 657.09 million pesos (11.86 million dollars).
The broader all-shares index advanced 6.05 points to 1,174.39.
Gainers beat losers 44 to 14, with 40 stocks unchanged.
The peso was at 55.39 to the dollar at midday.
"The bounce in Wall Street and the rise in (Philippine Long Distance Telephone) provided a good kick-off for investors to hunt for bargains."
However, dealers were split over whether Tuesday's rise can be sustained.
"The 1,900 level is being built as a strong support base. We have the entire fourth quarter to see if that level could be broken," Aguila said.
Jonathan Ravelas of Banco de Oro said the market had staged a technical rebound, which may continue as investors take positions in stocks of companies with strong profit prospects.
Monday's marginal rise in Treasury bill rates, following an increase of a quarter of a percentage point in the central bank's overnight interest rates, also gave the equities market some space to rally, Ravelas added.
PLDT led the way, ending 10 pesos higher at 1,655 after gains in its New York-traded shares.
Ayala Land advanced 20 centavos to 8.60 pesos, while parent Ayala Corp ended unchanged at 285 pesos. Bank of the Philippine Islands was up 50 centavos to 50.50 pesos and Manila Water Services ended flat at 6.30 pesos.
SM Prime Holdings re-treated 10 centavos to 7.30 pesos while parent SM Investments was unchanged at 220 pesos.
San Miguel B, open to all investors, fell two pesos to 90. San Miguel A, limited to locals, was unchanged at 65 pesos.