LAST week:  Market trading last week was generally flat. Overall, the benchmark index lost 46.10 points or 1.86 percent. Trading activity was slow, as investors mostly stood on the sidelines with trading activity less than P10 billion, the lowest since the May Labor Day holiday. A total of 55 stocks remained unchanged last week.

In its weekly report, AB Capital Securities Inc. said investors, like previous periods, latched on to market movements in the US as well as local and foreign economic indicators. The US reported that over 467,000 lost their jobs in June, way over the forecast pointing to a longer economic recovery. The unemployment rate of the world’s largest economy stood at 9.5 percent, with some predicting it will reach 10 percent this year.

This week: Analysts say stocks will likely mirror last week, in that trading will likely continue its flat to downward trend.

“The Philippine Stock Exchange [PSE] index is currently at 2,431.34 [points] and still has some ways to go before meeting the critical support level of 2,300,” said Prince Yeung of AB Capital.

He said investors have also realized that economic fundamentals do not support current price levels, and are selling very slowly. AB Capital said while the PSE index has been less volatile, movements “might eventually pick up.”

However, he said for those looking to buy, Monday may prove to be an opportunity, since the Dow—now at 8,280.74—is considered to be at a “critical juncture”

“Those with the view the Dow will bounce higher from its current level should buy [today]. On the other hand, those that believe the support will not hold should start locking in on profits,” said Yeung.

Stocks to watch: Analysts say trading is likely to remain thin and flat this week. Buyers are advised to stick to conservative stocks such as the large blue-chip companies. Getting in and out of the market fast is likewise a good strategy considering the significant amount of uncertainty that still prevails.