Share prices inched higher yesterday on bargain hunting. The Philippine Stock Exchange index went up 0.9 percent to 3190.67, a 27.42 point increase.

Gainers edged losers 77 to 27 while 36 stocks were unchanged.

Trading turnover reached 2.62 billion shares worth P3.125 billion.

The peso meanwhile closed at 40.65 to the US dollar, higher than Monday’s close of 40.67. The peso hit a 1-1/2-week high at 40.60 per dollar.

"Seems (dollar) long liquidation and an absence of corporate buyers pushed the peso up," a trader said.

"It is expected to trade within a broad range of 40.50 to 41.00 today," he said.

Although a big value of fund has returned to the market on Tuesday, after three days of successive sluggish trading, analyst are saying that many investors are still wary of the market’s prospects.

Claire Quiray, Accord Capital Equities, Inc. analyst said that prevailing trading strategy among investors is "to sell on strength".

"Investors are still waiting for the trend to be broken, but as it continues, we expect this to last until the whole first quarter," said Quiray.

Metrobank was up P3 to P45. Philippine Long Distance Telephone Co. (PLDT) was up P20 to P2,940. Ayala Land, Inc. was steady at P12.25. Universal Robina Corp. was up P1 to P14.75.

Meanwhile bonds were unperturbed by a Senate enquiry into allegations of bribery in a telecoms deal that has prompted calls for President Arroyo’s resignation and sparked the biggest protests since 2005.

"The market has been ignoring the political noise so far," said a trader. "Generally what is driving the market are the developments in the US"

Philippine bonds due in 2032 were steady at 96.875/97.25 cents to a dollar, while bonds due in 2031 were unchanged at 110.75/111.25.