MANILA, Philippines (Xinhua) - The Philippine market was able to make a last-minute rebound on Friday after investors decided to buy up the battered issues at the final bell.

The bellwether Philippine Stock Exchange index was up by 0.18 percent or 8.05 points to 4,268.74, while the broader all-share index gained 0.24 percent or 6.63 points to 2,725.89.

Trading volume reached 1.29 billion shares worth 5.4 billion pesos (125.05 million U.S. dollars) with 61 issues declining, 73 advancing and 43 unchanged.

Of the six counters, only the industrial sector failed to rally along with the index. The financial subindex meanwhile gained the most.

"Heading into the final session before an extended break, we do not really expect the market to make any major moves. Nevertheless, anticipation of the third quarter earnings lent a positive bias to (Friday's) trading," analyst Justino Calaycay of Accord Capital Equities Corp. said in an interview.

This week was not exactly an exciting day for the local equities which posted a weekly drop of 0.42 percent. Except for the debut of Cebu Air, Inc., Philippines' largest budget airline, most investors took a wait and see stance ahead of another shortened trading week in observance of All Saints' Day.

Investors are also anticipating the release of more corporate earnings results next week.

"Overseas, the jittery mood of the market brought by the brewing anxiety among investors in anticipation of the extent of the U.S. Federal Reserve's plan to stimulate the U.S. economy spilled over to the local market and dampened any buying momentum, " DBP-Daiwa Securities, Inc. said separately.

But noteworthy, it said, is the interest of foreign investors in the local equities. Year-to-date, the Philippine stock market was able to post a net foreign buying transactions of 66 billion pesos (1.52 million U.S. dollars)--the highest level it was able to reach in almost four years.

"For next week, the market is seen to be upbeat as a key economic data points to a robust domestic growth for the second half of the year. The government recently disclosed that the country was able to register a surplus in its August external trade," DBP-Daiwa Securities said.

"In our view, this is a positive development that mitigates our concern for the sustainability of the country's net exports for second half," it added.

DBP-Daiwa Securities said another positive economic development is the benign inflation outlook for October, which the local central bank estimates to be within the range of 2.6 percent to 3. 5 percent or the lowest level in 11 months on the back of cheaper power rates and the continued strengthening of the peso against the US dollar as the two main factors. 

"Despite the encouraging macro backdrop, however, we think investors may remain cautious and be selective as they await more third quarter corporate earnings results. The bulk of heavy weight index stocks will announce their earnings in the coming two weeks, " DBP-Daiwa Securities said.

Stocks in the 30-company index closed mixed. Among the most actively traded issues that continue to dip include heavyweight Philippine Long Distance Telephone Co., Ayala Corp. and SM Prime Holdings, Inc.

Newly-listed Cebu Air, Inc. also failed to sustain its Tuesday rally and fell below its listing price of 125 pesos (2.89 U.S. dollars) on Friday. Share price of the budget airline closed at 124.50 pesos (2.88 U.S. dollars).

"In our view, any pullback in the main index could be viewed as an opportunity to accumulate since the domestic economic environment is still robust," DBP-Daiwa Securities said.