"The lack of new developments both in the corporate and macro level will most likely keep investors sidelined with specific corporate developments likely to drive the market," Roberto Cano of BPI Securities said in a weekly report.
He added the market consolidation will likely continue until the release of first quarter economic results and after the May elections.
"Investors still view the coming elections as an overhang since a pro-opposition Congress may make it difficult for the Arroyo administration to push for reforms and for its economic agenda," Cano said.
At the close of trading last week, the main index had lost 8.58 points or 0.54 percent week-on-week to 1,588.39.
On the first three-month economic results, he said investors will look for signs and use these figures as a gauge whether the current changes in the country will lead to an improvement in consumer spending and in corporate profits.
For his part, Wise Securities research head Jose Vistan, writing for the web-based PhilStocks.net, said at present, "investors are not even considering dipping a toe in the water as the Erap saga is still far from over."
While the Supreme Court’s unanimous verdict on the legitimacy of the Arroyo government triggered a run-up, although mild in comparison with the Jan. 22 record (when Arroyo officially assumed office), market enthusiasm was soon quashed by lingering worries on the economic front and uncertainties at the political end.
"On top of the fundamental concerns, we believe the catalyst that investors would want to see is an end to the Estrada factor. With Estrada’s strong following among the masses, anything can still happen and the market is wary of that," Vistan said.
"We don’t think the government can move forward without settling with finality the charges against former President Estrada. Because of these worries, we do not believe it’s time to be making big bets, but we do think it makes sense to add further to equities once all the concerns are behind us," he added.