"We have already seen this year’s best run up already. The key risks for this week will be the developments on the political front. Anti-Charter change demonstrations will be closely watched by investors who are ready to take profits on the slightest indication of political instability," said analysts Jovis Vistan and Erwin Balita of AB Capital Securities.

The main composite index finally breached the 2,850 resistance level last Friday as Wall Street’s gains helped inspire investors’ sentiments.

"With the breach of the key resistance level, this may indicate the beginning of the annual year end window dressing activities," said Vistan and Balita.

"The local equities market just refused to take a break as it sustained its run up to day. Long term Investors continued to be very bullish about the market this year."

We are looking at economic growth being sustained at 5.5 percent, a stronger peso, lower interest rates and inflation."

The main composite index breached an important psychological resistance level at 3,000.

Vistan and Balita noted that with long-term investors still bullish on the market amid an upbeat outlook for the economy, follow-through buying is expected this month.