Share prices could advance in the next five days following last week's plunge should investors take advantage of the market's attractive position, analysts said.

While the Philippine Stock Exchange index managed to end in positive territory last Friday at 6,433.10, it was lower by 2.82 percent week-on-week.

'Last week, we've seen bearish technical developments with the local market. The market fell in the first four days of its trading, breaching its 200-day exponential moving average. Also, it hit a new year-to-date low at 6,341.54. Its MACD (moving average convergence/divergence) line has crossed below the signal line implying bearish momentum,' Japhet Tantiangco of PhilStocks Financial said.

On a positive note, he said the market was able to bounce back above its 6,400 support in the last trading day.

'Given its attractive position, we may see some bargain hunting in the local market this week. However, its direction is still expected to depend on upcoming data,' Tantiangco said.

'The local currency which has been a concern last week, if it continues to weaken, poses downside risks to the bourse,' he said.

Tantiangco said investors are also expected to watch out for the Philippines' May inflation data as well as the upcoming April labor market data for clues on the strength of the local economy.

He said an inflation print faster than April's 3.8 percent, especially one that breaches the upper end of the government's two to four percent target, may also weigh on market sentiment.

'The stock market will probably track US market on Friday to start the week, then price action may be influenced by May CPI on June 5,' Luis Limlingan of Regina Capital said.

According to, bargain hunters and dividend yield optimizers should enjoy buying windows around the 52-week lows.

It placed immediate support at 6,200 to 6,300, while resistance is seen at 6,600.

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