This week, investors in the local stock market will seek fresh catalysts to support the uptrend in share prices and will be looking out for the US inflation rate as well as the Philippine labor and foreign direct investments data.

“The market has been on an uptrend since bottoming last October 31, 2023…However, to sustain the momentum, the market is seen to need more positive catalysts,” said Philstocks Financial Research Manager Japhet Tantiangco.

He noted that, “while the decline of inflation last December is seen to have helped in lifting sentiment, investors are still expected to look further, primarily how the inflation trend and the BSP’s policy path will be this year. Thus, investors are expected to look for clues on inflation and monetary policy outlook.”

“Without positive catalysts, the local market may pull back next week on profit taking,” Tantiangco said.

Meanwhile, online brokerage firm 2Tradeasia.com said, “eyes will next be on US CPI to be announced next week- the Fed minutes just recently alluded to likely rate cuts sometime this year, but with an uncertain cadence and rate of change.”

It noted that, “global market participants are looking at the 2024-2025 era through more rose-tinted glasses-more growth-oriented investing is underscored, and consensus so far has tilted towards cash deployment.”

“Take advantage of the current exuberant mood to lock in short-term gains, but the long game is accumulating ahead of an economic inflection point in rates,” advised 2Tradeasia.com.

For stock picks, Abacus Securities Corporation reiterated its Buy call for ICTSI, despite the recent strong run in its share price, because of foreign interest, looming tariff hikes, and volume growth.

Abacus said it has also upgraded its long-term target price for ICTSI shares due to the 18 percent increase in consensus earnings per share estimates for 2024.

For its part, COL Financial reiterated its BUY ratings for D&L Industries Inc. because “we expect that the recovery in overall business activity should result in a more favorable sales mix for DNL and drive margin expansion over the long-term.”

“We also believe the company’s long-term growth prospects remain attractive and expect that the significant capacity expansion from its new Batangas facility will allow DNL to scale its export business,” it added.

COL also noted that D&L, through subsidiary Chemrez Technologies, stands to benefit most from the potential increase in the mandated biodiesel blend after the Energy Department issued a draft circular proposing the implementation of a higher biodiesel blend.

“While the segment has underperformed last year due to sluggish demand amid high inflation and the oversupply situation in the biodiesel industry, we expect that the potential increase in the biodiesel blend would support volume growth and margin enhancement for DNL’s biodiesel business (which currently accounts for 10 percent of consolidated revenues),” COL said.