The local stock market is seen to remain bearish this week as oil prices are rising again while foreign funds continue to exit on expectations of a rate hike in the US.

“While we may see some bargain hunting following two successive weeks of decline, the general market sentiment is still seen to have a bearish bias due to the lingering macroeconomic concerns,” said Philstocks Financial Senior Supervisor for Research Japhet Tantiangco.

He noted that, “The rising yields in the US in light of high inflation and hawkish monetary policy expectations could lead to sustained foreign fund outflows which would negatively affect the local bourse.” “Our country’s inflation is also expected to remain as a weighing concern amid the elevated oil, energy, and other commodity prices,” Tantiangco added.

He said investors may also take cues from the release of OFW Remittance and Balance of Payments data this week.

Meanwhile, 2TradeAsia.com said that, “Note that we are a month away from what is dubbed to be the most polarizing national elections in local history, a possible 50bps rate hike from the Fed, and full blast of first quarter earnings reports.”

The brokerage expects listed firms to have expanded earnings per share by about 15 percent which is “a modest expansion over last year's base-effect laden number, and on the higher end considering the oil-dependent, cyclical composition of the main index.”

It added that, “Higher cost of debt, further volatility of the peso and oil, and supply chain impact of China's centers shutting down for brief periods in the first quarter pose macro downside risks that can bring the average to single digits.”

For stock picks, Abacus Securities Corporation is recommending those that will benefit from the increasing mobility of consumers as the number of new Covid-19 cases has remained low after the surge in January.

Based on data from Google, Abacus said there has been a steady and sustained increase in mobility and this should boost the growth of the economy and the earnings of some listed firms.

Among these are mall operators such as SM Prime Holdings and Robinsons Land Corporation which should see more shoppers and diners in their premises.

Convenience store owners such as Philippine Seven and Robinsons Retail should also see sales pick up with the return to work order for Business Process Outsourcing firms as well as the upcoming elections.

The biggest benefactor though will be retailers such as Puregold, AllDay, Robinsons Retail, and SM Retail as Google data show higher visits to groceries and pharmacies due to increasingly confident consumers and election-related spending.

COL Financial also has a BUY recommendation for Metro Retail Stores Group Inc. despite its continued losses.

“Note that while MRSGI’s operations are currently challenged by the pandemic, this is only expected to be temporary. We expect core earnings to return to normal levels as the economy steadily reopens and as the company adapts to the new normal with its various growth initiatives,” COL said.