Manila - Philippine stocks surged 4.73 per cent on Thursday following gains in regional markets and the US Federal Reserve's interest rate cut, traders said.

The 30-share composite index added 84.29 points to close up for the second straight session at 1,864.93, from Wednesday's finish of 1,780.64.

A total of 1.885 billion shares worth 2.517 billion pesos (51.367 million dollars) were traded.

Gainers swamped losers 88 to 21, while 27 issues were unchanged.

Traders said investors cheered the US Feds decision to further lower interest rates by half a percentage point in a bid to encourage American banks to ease credit lines.

Market sentiment was also boosted by increases in regional markets, which extended a recovery on Thursday as investors continued to hunt for bargain stocks. (dpa)