MANILA - Philippine share prices closed 0.87% higher Tuesday, buoyed by gains on Wall Street and soaring gold prices, dealers said.

The composite index added 26.66 points to 3,074.66, while the all shares index added 0.36% or 6.93 points to 1,909.45.

Turnover was heavy with 2.54 billion shares worth P4.16 billion ($88.42 million) changing hands, though decliners outnumbered advancers, 74-41. Fifty-six other scrips finished unchanged.

The peso traded at 47.035 to the dollar in the morning.

"Many investors are still cautious, wanting to preserve recent gains," Ron Rodrigo of DBP-Daiwa Securities told Dow Jones Newswires.

He said the key index should expand its trading range to between 3,000 and 3,100 points on Wednesday, with the overnight performance of US stocks as the likely key to investor sentiment.

The Dow Jones Industrial Average closed 1.26% higher Monday.

Recent dollar weakness has encouraged traders to move into riskier assets including gold, which surpassed the $1,170 an ounce mark in both London and New York trading overnight before falling back slightly.

Century Peak Metal Holdings soared 10.34% to P6.40 while Philex Mining grew 4.11% to P19.

Philippine Long Distance Telephone rose 2.16% to P2,600.