The benchmark Philippine Stock Exchange index finished in the positive territory last Friday with a three-day winning streak. It rose by 1.33 percent week-on-week, ending at 6,518.76.

Japhet Tantiangco of Philstocks Financial said the local market was able to bounce back last week as investors digested the country's May inflation of 3.9 percent, which remained within the government's target range.

However, Tantiangco said trading has been tepid, implying that many are still on the sidelines amid market uncertainties.

'The local market is still seen to be at attractive levels. Hence, we may still see some bargain hunting moving forward. However, downside risks remain which is seen to make it challenging for the market to sustain momentum,' he said.

This week, Tantiangco said the local market could move sideways.

'The end of El Niño is seen as a positive development for our inflation picture as pressures on our food supply and demand for electricity are expected to ease. This, in turn, is seen to help the market,' Tantiangco said.

'However, the stronger than expected May jobs report in the US which dents the hopes of a rate cut by the Fed soon may weigh on sentiment. Adding to this is the lingering weakness of the local currency,' he said. said funds were quick to pick up bargains after the recent sharp decline, as fresh macro data is now more carefully being balanced against expectations grounded in reality.

It said immediate support is at 6,350 while resistance is at 6,600.

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