BARGAIN hunting may provide some lift but the stock market is unlikely to significantly regain ground lost over the last five weeks, analysts said.

The benchmark Philippine Stock Exchange index closed at 6,685.90 last Thursday, down 1.37 percent from a week earlier. It has fallen by 5.25 percent since January 20, which was the last time it closed higher week on week.

'The local market has already been declining for five straight weeks,' said Japhet Tantiangco, senior research analyst at Philstocks Financial Inc.

'[W]e may see episodes of bargain hunting,' he added, but 'the local market is not expected to pose a strong rally amid weighing monetary policy concerns and lack of a strong catalyst.'

'The hawkish outlook of the Bangko Sentral ng Pilipinas (BSP) and the Fed (US Federal Reserve) are still expected to cloud sentiment for the week as well.'

Investors could take their cues from fourth-quarter results due this week and also Wednesday's release of the latest purchasing managers' index (PMI) for the country, Tantiangco continued.

Among the companies scheduled to detail fourth-quarter and full-year results this week are blue chips Manila Electric Co., Metropolitan Bank and Trust Co., Seminara Mining and Power Corp., SM Investments Corp. and BDO Unibank Inc.

Other than the PMI, economic data releases set for this week include budget deficit data for December (February 28), outstanding government debt as of January (March 2) and universal/commercial bank loans (February 28). The BSP will also release its forecast for February inflation on Tuesday.

'The market's support is seen at 6,600 while its immediate resistance is seen at the 50-day exponential-moving average followed by the 6,800 level,' Tantiangco said.

Online brokerage 2TradeAsia.com, meanwhile, said 'anemic' money flows also could be the theme for the stock market over the next few weeks as equity yields were being pressured by macroeconomic headwinds.

'Right now, Fed officials are backing more interest rate moves in upcoming Federal Open Market Committee meetings, citing that inflation has still yet to go down despite aggressive rate hikes last year,' 2TradeAsia said.

'Moreover, bond yields have gone up as a result of interest rate expectations going the other way as initial consensus. Policy shifts tend to spook fixed income yields first but the movement is sure to catch up to other assets such as public equities and real estate.'

It reminded investors to 'accumulate on dips' and added that 'earnings calls should remind markets that while external factors partly shape fundamentals, ultimately, corporate leadership, strategy and product or service quality relative to competition is what drives value.'

'Immediate support is 6,500, resistance is at 6,800.'

Rizal Commercial Banking Corp. chief economist Michael Ricafort, meanwhile, said the immediate major support would be at 6,650.

'For resistance levels, the next immediate minor resistance level is at 6,830-6,890 levels. Afterwards, it will be again at 7,000-7,100 levels, which serve as the next gateway prior to further upside,' he added.