While coming off a record-breaking week, Philippine stocks might prove to be not immune toward global sentiments this week after it performed relatively flat in the last two days sessions of the previous week.

Freya Natividad, analyst at online brokerage 2TradeAsia.com, said that the market may take more cues on the trends at the economic front and other global markets, like US and China.

“Sequel monetary policy moves from industrialized markets’ central bank will be focused this week, particularly the European Central Bank’s [ECB] decision to hold interest rates at 0.75 percent,” Natividad said.

She added that investors might also pay attention to economic numbers in the US, specifically on inflation and progress within their respective jobs market.

“Within Asia, China will grab bulk of the headline, specifically on the nation’s ability to recover from consumer demand slowdown the previous year,” she noted.

Jun Calaycay of Accord Capital Equities Corp. also said that the US will be at the market’s crosshairs, easing out Europe at least over the next couple of weeks.

“After having ‘survived’ a close call over automatic tax increases over the New Year, attention shifts to the debt ceiling and spending cut debates, potentially yet another cause of shifting sentiments,” he explained.

Natividad, on the other hand, cited another activity that may occur within this week’s trading.

“As optimists and pessimists gather in deciding whether the local market would trounce past the 6,100 barrier, market players might check how long periods of ‘stabilization’ will be maintained, especially with the new-found momentum supporting the market [+42 percent week-on-week at P8.2 billion average],” she said.

Natividad specified that intra-week occasion of declines, or periods of “pauses,” might be used to reposition excess cash, with equities seen to enjoy a larger weight in their respective portfolio basket.

“For now, range-trading might be felt following the PSEi’s [Philippine Stock Exchange] uptrend since December last year. Start selecting stocks that have lagged versus market counterparts, especially those that would benefit most from improved fiscal and corporate spending focus this year,” she added.

For this week, immediate support is 6,000, resistance at 6,100 to 6,150.

Last week, PSEi performed well by rising 80 points at 6,051 (+1.34 percent week-on-week), while participation reached P8.302 billion (+42.43 percent) on average, with gainers-losers at 94-79. Net foreign buying was P388 million.