MANILA, Philippines -- Local stocks will likely enter a consolidation phase this week as the market awaits more incentives to load up on equities before testing recent index highs.

The main-share Philippine Stock Exchange index fell nearly one percent to 3,558.67 last week, though briefly perked up by news about the stronger-than-expected gross domestic product (GDP) growth of 7.9 percent for the second quarter.

ING Investment Management chief executive officer Paul Joseph Garcia said the index would likely range from a low of 3,500 to a high of 3,600 over the near term.

However, he noted that the outlook would still be bullish for the remainder of the year.

Garcia said stock market valuations were still cheap as earnings expectations were rising faster than price levels following a favorable re-rating made by many analysts due to a stream of good second quarter income results.

Eagle Equities president Joseph Roxas said the market might gain in the reopening of the stock market on Tuesday from a long weekend break due to some month-end window-dressing.