The local stock market is seen to move sideways this week as the previous week’s trading shows that investors are not allowing the PSEi to drop too low while not having enough confidence to buy up share prices.

“For trend watchers, the best case is for a sideways drift to appear in the next sessions while the worst case is for a break towards the 5,000 zone,” said online brokerage firm 2TradeAsia.com.

It added though that, “Friday's strong rejection of the 6,000 level underpins the former.”

“Next week, we may see sideways movement from the local market. On a positive note, progress is seen on our country’s vaccine procurement. This helps in improving our medium- to long-term economic prospects,” said Philstocks Senior Analyst Japhet Tantiangco.

He noted though that, “On the flipside, investors may continue to worry about our second quarter economic and corporate results which are seen to bear the brunt of the stringent quarantine measures previously imposed in the National Capital Region Plus.”

“Offshore worries, primarily the inflation and interest rate concerns in the US may also weigh on the local bourse,” Tantiangco added.

Meanwhile, 2TradeAsia.com said that, “the general sentiment on the street agreeing that late-2021 numbers will definitively be better on a year-on-year comparison should provide enough fuel for valuations to seek higher ground.”

“As the first half nears its close, we are also entering one year before the 2022 elections. This environment is usually exciting for cyclicals, media, and regulation-dependent shares (such as mining and power),” it said.

Thus, 2TradeAsia.com advises investors to “keep an eye out for severely bruised blue chips and potential CREATE bill winners, before the rest of the market wears their bargain hunting glasses.”

BDO Chief Market Strategist Jonathan Ravelas said last week's close at 6,269.36 signals the market’s continued march towards the 6,000 levels is gaining momentum.

“Should this decline accelerate in the coming days, it could put the 6,000 levels to the test and if it further breaks, could put the 5,700 levels within striking distance. However, should the 6,000 levels hold, expect a sizable bounce towards the 6,500 to 6,700 levels in the near-term,” he added.

COL Financial is recommending a BUY for shares of DMCI Holdings as due to an increase in its 2021 earnings forecast by 11.6 percent to P10.95 billion, “In light with the increase in our estimates for (Semirara) and in line with the passage of the CREATE Bill.”

“Despite the impact of the Covid-19 pandemic on most of DMC’s businesses, we believe that much of the negative news is already priced-in,” it added.

COL also has a BUY rating on Metrobank because it has a lower exposure to riskier segments, with consumer accounting for 21 percent of total loans.

Also plus factors for Metrobank is its high non-performing loan coverage ratio at 166 percent and its better access to liquidity.

“The bank has also been front loading its provisions in 2020 which should allow the bank to resume its growth faster once the economic growth resumes,” COL noted.

Meanwhile, Abacus Securities Corporation has a BUY rating for Robinsons Land as its performance in the first quarter is better than that of its peers.

In addition, the firm’s planned real estate investment trust offering later this year could raise P24 billion for the company, more than a quarter of RLC’s market capitalization.

“This might not be enough to move the stock but it should significantly enhance the firm’s balance sheet and lower its effective tax rate,” Abacus said.