"This week will prove interesting as well as we anticipate some positioning already for a potential window-dressing by end of the year," says analyst Erwin Balita of AB Capital Securities.

PNOC-EDC will go public with an initial price of P3.20 per share. The offering, which raised close to P16.6 billion, probably among the largest offers to date, was heavily oversubscribed, says AB Capital.

"The issue trades at a slight discount to our basket of utility related stocks. Initial numbers point to a fair upside based on relative price-earnings ratio (PER) valuation of P3.93 per share," says Balita.

Investors would also keep an eye on the listing of Metro Pacific Investments Corp., (MPIC). The product of an extensive rehabilitation program concluded from Metro Pacific Corp. (MPC) will list its shares on the Phil. Stock Exchange under the symbol "MPA" beginning Dec. 15, 2006.

Balita says the company would now have better prospects given the Maynilad business angle.

The PSEi gapped up last Friday, making an impression that the market maybe on the verge of another run to close the year.

"However, traders need to note that last Friday’s gap was driven primarily by Meralco. Out of the 35 point gain last Friday, 34 points came from Meralco related issues."

Balita believes that the market will most likely consolidate due to the lack of strong leads on the bigger picture.

"In fact, one potential catalyst this week may come from the local political front. The government’s plan to amend the constitution by convening itself into a constituent assembly is encountering some resistance and has again stirred the nation’s emotions."

A major rally led by the Roman Catholic church is reportedly being organized to counter the House of Representatives’ move.

"Like in the past, such a backdrop will dampen sentiments in the equities market. And to compound matters, share prices still have a lot of room to correct technically."

"On the brighter side, we may see an improvement in market liquidity as the offering period of PNOC-EDC ended last week. Stay with the long term trend and use short term corrections as opportunities to accumulate," says Balita.

"Local investors were unnerved by the unfolding political drama regarding developments on proposed Charter change.

Pro-administration lawmakers were successful in their efforts to amend the Constitution by establishing a constituent assembly, which eventually wants to push for a parliamentary form of government.