Movement in the local stock market this week will be dictated by a slew of economic data here and in the US, the US Federal Reserve policy meeting, as well as more corporate earnings reports. “Macro watchers will have their pencils busy this week: US labor data and the Fed's widely anticipated policy meeting should drive global volatility,” said 2TradeAsia.com. China Bank Capital Corporation Managing Director Juan Paolo Colet also noted that, “We have a crucial week ahead and expect potentially significant movements on the back of several key data releases and the results of the US Fed policy meeting.” He added that, “There’s a chance the Bangko Sentral might signal its view on the path of domestic policy rates soon after the Fed’s policy announcement.” “Optimistic anticipation of first corporate results here in the Philippines is still expected to support market sentiment,” said Philstocks Financial Head of Research Japhet Tantiangco. However, he said “How the market will close the week may depend on our April inflation figures. An inflation reading slower than March’s 7.6 percent, especially one near or at the lower end of the Bangko Sentral’s 6.3 to 7.1 percent range forecast may give the local market a boost.” Online brokerage 2TradeAsia agreed, saying “Philippine inflation print will likely dictate whether or not this week's rally has legs.” “If the stars align — lower inflation, an end to the rate hike cycle, and more positive earnings releases — we could see the index attempt a breakout above the strong resistance at 6,650,” said Colet. He added though that, “Nonetheless, downside risk cannot be discounted just yet, as investors will be quick to sell in case news flows are disappointing.” “Being sector selective & strictly opportunistic should hedge against potential earnings downgrades heading into midyear. Key is to maintain liquidity in the near-term as heightened volatility is all but expected in this week's shorter but eventful trading week,” 2Tradeasia.com said. It advised that, “Bargain hunting may provide excess returns should headlines turn negative and shake off weak hands. Bottomline is to range trade and keep to modest gains for now, pending stronger and more congealed market direction.” For stock picks, Abacus said Aboitiz Power is among those topping its list in the power sector as “its 1,000 MW renewable energy pipeline should reap the benefits from the persistent tightness in the grid as projects come online over the next two years.” “Spot prices rose from P6.57 per kwh in March to P7.68 per kwh in April, and that May is likely to remain above P7.00 per kwh due to the current heat wave,” said Abacus which noted that this will benefit AboitizPower in the second quarter as it derived 70 percent of its full-year power revenues from spot last year. The brokerage is also rating Nickel Asia a buy since, even though its top line expansion may be muted, “margins are likely to be significantly better so we expect decent to strong earnings growth for the first quarter. This should help keep the positive momentum for the share price alive.” Meanwhile, Abacus has upgraded its target price for BDO Unibank because “we believe there is still more upside to BDO this year. With higher asset yields and despite higher rates paid to depositors, net interest income has been growing at double digits.” “BDO is quite firmly already out of the crisis era in terms of operating income,” it said but noted that the stock's valuation is still not up to 2019 levels and should thus rise further given the company's stellar earnings performance. COL also rates BDO a BUY and has also upgraded its earnings forecasts following the outperformance in the first quarter. It added that, “We continue to like the bank as we expect it to be one of the major beneficiaries of the continued recovery of the economy given its liquid balance sheet and wide branch network. Furthermore, with its strong deposit franchise, the bank is well-positioned to capitalize on opportunities in the elevated interest rate environment.” “COL also has a BUY rating on COSCO as it “remains severely undervalued, with the market not valuing its other businesses (apart from PGOLD) like the fast-growing liquor business, in our view.” The brokerage has also raised its fair value estimate for SSI “as a result of the changes in our forecasts following the better-than-expected 2022 results. Despite inflationary headwinds, we think SSI remains well-positioned to capture the rebound in discretionary spending given its core customer base in the upper-income segment and its portfolio of established and upscale brands.”