(UPDATE) Stocks close higher on optimistic market expectation

MANILA, Philippines (Xinhua) - The stock market rallied to the 7,300 level ahead of the local monetary board meeting this week.

The bellwether Philippine Stock Exchange index gained 0.71 percent or 51.36 points to 7,314.94, while the broader all-share index rose by 0.66 percent or 28.50 points to 4,318.86.

Trading volume reached 1.52 billion shares worth P10.12 billion ($231.93 million) with 90 stocks advancing, 95 declining, and 39 were unchanged.

Of the six counters, only the industrial sector bucked the trend.

"The market may continue to close in the green following the announcement of flat inflation for August," brokerage 2TradeAsia. com said in its daily stock market comment.

The online brokerage said this will boost optimism of a favorable Monetary Board decision in the coming week.

Last week, the government reported that inflation steadied at 4. 9 percent in August, breathing more life in the local equities.

Overseas, developments coming from the ceasefire between Russia and Ukraine could lend extra support, it said.

Stocks in the 30-company index closed mixed. Among issues include Ayala Corp. and Bloomberry Corp.