Bargain hunting seen to continue this week

Coming from a long weekend, the stockmarket is expected to start flat but some investors are expected to follow through on their buying activities to scout for bargain stocks and mining issues given the bullish outlook on the commodities sectors.

BPI Securities said the market may resume its upswing, targeting the 2270 resistance. "With the bullish outlook on the commodities sectors, emphasis will likely still be on the mining and oil stocks," BPI Securities said. Last week, the market closed higher as investors were hot on property stocks led by Ayala Land and Filinvest Land. Other big gainers were International Container Terminal Services Inc. and Globe Telecoms.

Ayala Land provided the biggest boost to the index with a gain of 2.3 percent to P11.25. ICTSI rose 6.8 percent to P11.75 while Globe went up 0.6 percent to P900 following reports it received regulatory approval to offer reduced text message fees for a month starting April 15. Philex Mining A and B shares both set new closing highs, rising 2.7 percent and 4.1 percent to close at P3.80 and P3.85, respectively, as high overseas metal prices are expected to provide a boost to the company’s earnings this year.

AB Capital Securities is bullish on the stockmarket this year given the improving fiscal position and favorable corporate fundamentals. "However, we believe that things should slow down before it can truly get better. The implementation of higher taxes does have its short term negative effects on consumer spending and corporate profits," AB Capital Securities said.

"With first-quarter earnings season not due till the end of the month, there is very little that can be considered as market moving. Resistance on the new main composite index is seen at the 2,250 level," AB Capital Securities said.

AB Capital Securities said the rising of oil and the growing longer term concern concern of peak oil may dampen market sentiment. Crude oil prices soared to its highest in 3 1/2 months amid worries aboutpossible supply disruptions. But mining stocks may benefit from the inflationary concerns as commodity prices continue to rise to record highs.