MANILA (UPDATE) - Philippine shares extended its rally for a second straight day despite investors' uncertainty over an impending change in leadership.

The Philippine Stock Exchange index (PSEi) closed at 7,396.52 on Wednesday, up 221 points or 3.09 percent.

Companies like JG Summit, SM Prime Holdings, and Megaworld helped boost the index.

The peso also closed stronger against the dollar at P46.55.

Jomar Lacson, deputy head of research at BPI Trade, said the decisive results of the presidential elections have taken a lot of uncertainty off the table.

"The elections were credible, clean, and quick. I think it establishes that we follow the democratic institution and I think foreign investors like that," he told ANC's "Market Edge with Cathy Yang."

Lacson said for the market to sustain this momentum, presumptive winner Rodrigo Duterte needs to make clear his plans for the Philippine economy, starting with his economic team.

The index fell 2.3 percent last week amid uncertainty as Duterte had been very vague on what he would do to spur the economy.

"From an economic perspective, we feel that fears are overdone; Philippines will probably retain its status of bright spot in Asia while its investment grade status is unlikely to be impacted," Mizuho Bank meanwhile said in a note on Tuesday.

Philippine shares jumped 2.6 percent to close at 7,174.88 on Tuesday. -- Reports from Warren de Guzman, ABS-CBN News; Reuters