However, many investors were on the sidelines ahead of a four-day weekend. Philippine financial markets will be closed on Monday, Tuesday and Friday next week for public holidays.
The composite index rose 18.76 points to 1,960.22 after trading between 1,941.46 and 1,960.57. Turnovers were 485.2 million shares worth 1.07 billion pesos (19.4 million dollars).
The all-shares index rose 10.19 points to 1,191.02.
Gainers led losers 43 to 25, with 37 stocks unchanged.
The peso was at 55.10 to the dollar by midday.
"Some investors were gradually building their positions in select blue chips, with the initial batch of third-quarter results quite encouraging," Accord Capital Equities Corp analyst Ron Rodrigo said.
Analysts had expected a more cautious tone in Friday's trading given lingering political and security concerns but some investors opted to accumulate stocks after the key index broke through the 1,950 resistance level mid-session.
They said the equities market was also buoyed by the peso's strong rebound against the dollar this week, hitting a four-month peak of 54.96 on Wednesday.
Philippine Long Distance Telephone, the most actively traded stock, closed up 15 pesos at 1,675.
SM Investments broke through a resistance level, advancing seven pesos to 227, while SM Prime rose 40 centavos to 7.90 pesos as it opened its 21st shopping mall.
Ayala Corp rose five pesos to 290.
San Miguel B shares, available to all investors, rose 1.50 pesos to 90, while its A shares, limited to local investors, were steady at 65 pesos.