Investors' optimism on the Philippine economy continue to send share prices climbing on Tuesday to a new record high of 4,591.26 before tapering off by the final bell.

The bellwether Philippine Stock Exchange index nevertheless ended the session just below record at 4,561.08, up by 0.42 percent or 19.48 points. The broader all-share index added 0.4 percent or 12.38 points to 3,106.43.

Trading volume reached 3.45 billion shares worth 6.25 billion pesos (142.36 million U.S. dollars) with 100 stocks advancing, 57 declining and 42 unchanged.

Of the six counters, only the mining and oil sector bucked the trend and succumbed to profit taking.

Brokerage DBP-Daiwa Securities, Inc. said investors remain bullish on the economy given expectations of lowered rates to support business growth.

"The continued easing of the country's inflation rate provides enough justification for a possible policy rate cut by the central bank in order to spur economic growth and alongside the planned rollout of government infrastructure projects," the brokerage said.

DBP-Daiwa Securities said lower interest rates are supportive of the banks'lending business as cost of borrowing would relatively be cheap.

This, it said, is the key reason as for the strong stock performance of the major banking stocks at the start of this year.

In fact, the country's top three banks, Banco de Oro Unibank, Inc. (BDO), the Bank of the Philippine Islands and Metropolitan Bank and Trust Co. were Monday's top gainers.

The brokerage also noted that there was a strong value turnover among these issues signaling the "incessant appetite for these high beta counters."

Also, equities across the globe were trading higher.

Dow Jones industrial average index finished Monday's session with a gain of 32.77 points. Neighboring Asian stock markets also traded positively on Tuesday.

Stocks in the 30-company index were mostly up. Although investors booked their BDO gains, the two other banks continue their upward trek.

In other corporate news, port operator International Container Terminal Services Inc. is eyeing 150 million U.S. dollars from an overseas debt sale to finance new projects for 2012.

ICTSI said proceeds from the offer will be used to develop greenfield projects, potential acquisitions and general corporate purposes.