Investors will be on the lookout for positive catalysts this week in a bid to sustain the stock market's climb last week.

The local market showed signs of recovery the past week with a five-day winning streak.

The benchmark Philippine Stock Exchange index closed at 6,628.75, last Friday, up by 2.88 percent week-on-week.

'After three weeks of decline and with tensions in the Middle East easing, the local market was able to bounce back last week. However, trading was anemic which shows that last week's rise still lacked the strong general market confidence,' Japhet Tantiangco of PhilStocks Financial said.

For this week, Tantiangco said macroeconomic concerns are still expected to be present, primarily with respect to the Philippines' inflation and interest rate outlook.

He said these are expected to weigh on the market.

Tantiangco said investors are also expected to watch out for policy outlook clues from the Federal Reserve's meeting following the latest macroeconomic data from the US.

'Finally, investors are expected to watch out for positive catalysts that could bring back the bullish sentiment,' he said. in a report said movements are expected to remain glued over inflation and interest rate movers.

'The PSEi's bounce at the 6,400 zone is a relief signal in an otherwise lackluster week. Expect tension between a disheartened market that originally expected rate cuts by second quarter versus bargain hunters aiming for lower average cost plus higher dividend yield in the medium term,' it said.

Support is seen at 6,300 to 6,400, while resistance is at 6,600 to 6,700.

'Chartwise, last week, the market was able to close above its 200-day exponential moving average. This week, the market may test the validity of its breach of the said line. If it is able to hold its position above its 200-day EMA (Exponential Moving Average), we may see more upward momentum moving forward. If it is unable to do so however, we may see the market decline again towards its support at 6,400,' Tantiangco said.

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