Philippine share prices closed 7.31 percent higher on Tuesday, in line with the global rebound in stock prices, dealers said.

The composite index closed 154.90 points higher at 2,273.65 points, while the all-shares index rose 4.8 percent to 1,449.36 points.

There were 101 gainers, 16 losers and 26 unchanged.

Turnover reached 1.87 billion shares worth 3.615 billion pesos (76.88 million dollars).

The local currency traded at 47.02 to the dollar.

"The markets got a boost of confidence from the actions in the United States and Europe with the government's plan to purchase shares of banks," said Jose Vistan of AB Capital Securities Inc.

"The ones being pressured are the banking issues so with the governments' commitment to come in and support banking shares, this provided some relief and confidence for investors." he said.

Vistan said there could be problems in the long-term but added that "for now the rally could last for more than week."

Philippine Long Distance Telephone Co. (PLDT) gained 7.76 percent to 2,430 pesos.

Ayala Corp. rose 11.2 percent to 262.50 pesos while Ayala Land Inc. rose 9.7 percent to 7.90 pesos.

San Miguel Corp. saw its A shares rise 3.09 percent to 50 pesos while its B shares gained 5.2 percent to 50.50 pesos.