The positive environment in the Philippine economy and equity market would likely continue to attract more funds into the country in the near-term, according to FMIC and UA&P.

In spite of uncertainties abroad, solid economic fundamentals as well as spritely corporate earnings will keep the local market attractive.

Although the local bourse decoupled in the second quarter, "we think that investors should always keep a good measure of caution since we cannot completely get away from the pessimistic developments overseas. Investors should not be fully invested all the time."

On the long term, positive profits and fundamentals are expected to keep the index afloat. The new GDP growth target for this year is about 5-6% from the 2.6-3.6% range which means that a positive backdrop for the local market will remain intact, says FMIC and UA&P.

"Moreover, having a new Philippine president will affect the local market sentiment depending on his ability to execute his economic and political agenda."

"The euphoria and high expectation for Pres. Noynoy Aquino may come at a high price. In our opinion, Aquino’s win mirrors that of Obama’s in 2008, with its attendant euphoria and high expectation."

"The performance of the current US president is below expectation so far, and the Americans are starting to lose faith in him. Thus, it would be wise to lower expectations until concrete signs of progress by the new government emerge," FMIC and UA&P added.