The local stock market is seen to try to get back above the 6,400 level after last week’s fall as fund managers may do some window-dressing with the second quarter and first semester coming to a close. “Market movement this shortened trading week will be driven largely by window dressing activity and technical trading as the first half of the year draws to a close,” said China Bank Capital Managing Director Juan Paolo Colet. He added that, “Investors will also start looking to position for the next half of the year as they assess the outlook for inflation and interest rates, and whether central bankers can ensure a soft economic landing against a backdrop of the most hawkish Philippine and US monetary policy in decades.” Philstocks Financial Research Manager Japhet Tantiangco noted that, “The local market has been on a bearish bias, declining for five straight trading days. With its drop last Friday, the market even breached its 6,400 support.” “On a positive note, given the good corporate fundamentals, the local bourse’s decline brings it to more attractive levels,” he added. Tantiangco said that, “Given the market’s current position, we may see some bargain hunting which in turn could help it bounce back.” “Investors may also digest the results of the Bangko Sentral ng Pilipinas’ latest confidence surveys where both businesses and consumers have shown optimism for the upcoming quarter… However, global economic worries may continue to weigh on sentiment,” he said. Colet said that, “The local index is at a critical juncture near 6,400 and needs to rally above that hurdle to prevent further declines to the 6,300 to 6,350 support zone.” “I expect many bargain hunters to emerge at and near those levels, which should cushion any weakness and potentially set the stage for a near term recovery,” he added. Tantiangco said that, this week, “the market may retest the 6,400 level. If it is able to get back above this level, then its trading range is still seen from 6,400 to 6,600. If it fails however, 6,400 will become its immediate resistance while its next support is seen at the 6,000 - 6,100 range.” “As the market continues to consolidate and in the eleventh hour of the second quarter 2023, funds are expected to recalibrate allocation strategies for what remains of the year,” said 2Tradeasia.com. It added that, “We remain staunch advocates of value investing in select sectors only, especially in times such as this when certain baskets' valuations are touching historical lows.” The brokerage noted that bank and allied sectors may see some upgrades in lending and trading gains outlook with the effectivity of the BSP's reserve requirement cut on June 30 which should provide extra liquidity. For this reason, Abacus Securities Corporation is recommending investors to accumulate shares of Metrobank and GT Capital because of its stake in Metrobank and because of strong vehicle sales of Toyota Motors Philippines. Meanwhile, COL Financial has a BUY rating on Bank of the Philippine Islands “as we expect to see sustained growth in the bank’s lending portfolio as the economy continues to recover.” “Furthermore, BPI is one of the major beneficiaries of elevated interest rates, given its substantial low-cost deposit base. The bank’s upcoming merger with Robinsons Bank Corporation (RBC) will also provide it with opportunities to build new synergies with the Gokongwei group and thereby further expand its business,” it added. Abacus also recommends investors to buy Century Pacific Foods  (CNPF) shares on weakness on news that the UK and the Philippines have planned a new trading scheme and this has already started to take effect. The trading scheme aims to increase exports to the UK by removing the duties or tariffs imposed to exporters such as the Philippines. Exporting products part of the trading deal include tuna so this will be positive for exporters such as CNPF.