The local stock market continues its bearish trend, breaking below the 7,000 support line, but, cheaper prices and the prospect of a rate cut may encourage buying activity while investors await foreign direct investment and remittance data.

"Foreign funds have been exiting the market, and technical charts indicate downward momentum," says Philstocks Research Manager Japhet Tantiangco. "However, after a three-week decline, the market is at more attractive levels, so we may see bargain hunting next week."

Tantiangco cautions against expecting a strong rebound. "Investors are still grappling with slow economic growth, a weak peso, and a challenging global economic outlook," he explains.

On a positive note, he adds that robust corporate earnings and the possibility of continued monetary policy easing in the Philippines could boost the market. "Controlled inflation, the growth slowdown, and the Fed's policy easing may allow for further rate cuts," Tantiangco notes. "Investors will also be watching for foreign direct investment and OFW remittance data."

2TradeAsia.com warns that emerging markets may face short-term challenges due to the strengthening US dollar, fund repatriation, trade reshuffling, and geopolitical anxiety. "The US election results overshadowed the Fed's expected rate cut and the strong likelihood of another cut in December," they observe.

"The BSP is expected to follow suit with another cut in December, though with less certainty given the weaker peso and slightly higher inflation in October," 2TradeAsia.com adds. "Expect market jitters until policy shifts and their impact are clearer. Strong risk management is crucial in this volatile environment."

Both COL Financial and Abacus Securities Corporation have issued BUY ratings for Ayala Land Inc., which reported higher earnings for the third quarter, driven by strong residential revenue and a robust malls segment.

COL Financial notes that Ayala Land's office leasing segment continues to improve despite challenging conditions. Abacus Securities acknowledges the potential impact of foreign fund outflows but remains confident in Ayala Land as a top pick among residential developers.

Both brokerages also favor D&L Industries, which is ramping up production at its new Batangas plant. COL Financial expects sustained earnings recovery for D&L, citing peaking inflation, recovery in household spending, and a positive outlook for its subsidiary Chemrez.

"D&L's long-term growth prospects are attractive," COL Financial adds. "The capacity expansion at its Batangas facility will enable D&L to scale its export business."

Abacus Securities believes D&L Industries is a growth story that will deliver returns in the next one to two years. They also recommend China Banking Corporation, advising investors to capitalize on the current market dip in anticipation of the stock's addition to the PSEi in February.