Investors will again wait to see if the government will announce any changes in quarantine measures while prices of certain stocks may be boosted by quarter-end window-dressing.

“Next week, investors are expected to watch out for the government’s quarantine classification decisions for the country after June 30. Further easing of restrictions may push the market to a positive close next week,” said Philstocks Senior Supervisor for Research Japhet Tantiangco.

He noted that, “Till the government’s decision, the market is seen to move sideways while investors look for clues or hints on what the new quarantine measures will be.”

Tantiangco added that, “Investors may also watch out for the upcoming IHS Markit Philippines Manufacturing PMI for clues on how the local economy is faring.”

He added that, “Investors may also monitor Wall Street to see if it would be able to sustain its good performance last week. If it is able to do so, then it may have positive spillovers for the local bourse.”

Meanwhile, online brokerage 2TradeAsia.com said that, “After a strong rejection of the 7,000 level a fortnight ago, the PSEi looks to finally trounce this psychological resistance, this time with a better outlook for the second half of the year supporting the buying thesis dovish Fed and vaccine deployment traction.”

It added that, “Funds looking to window dress in this quarter's close should also prop up turnover this week, which range traders can take advantage of to make a quick buck.”

BDO Chief Market Strategist Jonathan Ravelas noted that, the PSEi rose last week as investors are optimistic on further reopening of the economy as vaccinations pick up speed and improved second quarter 2021 corporate earning expectations.

However, he noted that, “the close at 6,950.51 implies a near-term top could be in place at the previous week’s high of 7,001.21. Continue to expect the market to range between the 6,700 - 7,000 levels in the near-term.”

He added that, “a sustained fall below the 6,700 levels could signal the market could retry the 6,300 - 6,500 levels and reignite the bears to play.”

For its stock picks, COL Financial said it has a BUY rating on Aboitiz Power Corporation despite the poorer earnings outlook for 2021 due recent unplanned outage of GNPower Mariveles.

“We believe that bulk of the negatives have been priced in. AP’s valuation has become increasingly attractive with the stock trading at 12.3 times 2021 price to earnings, below its 10-year historical average of 12.7 times,” it said. 

Abacus Securities Corporation said consumer stocks should benefit from the approaching elections, “although this may be more muted compared to previous elections because of the increased use of social media and current restrictions on public gatherings.”

“This reinforces our buy call on LT Group and Puregold, who both look to sustain and strengthen their earnings performance,” it added.

Abacus also favors Wilcon Depot after management expressed their optimism of the company to continue growing in 2021. “We reiterate that we are still bullish on WLCON as trends will benefit home improvement stocks and will continue to drive WLCON's earnings to reach or exceed expectations,” it noted.