LOCAL stocks are seen trading in a tight range this week, remaining in a period of consolidation as traders turn more cautious after the bullish breakout seen in previous weeks.

Week on week, the Philippine Stock Exchange gained 34.41 points or 1.13 percent to close at 3,068.73, mainly due to the play on Philex Mining Corp. and Manila Electric Co.

With the market entering the month-end period and with the Philippines’ third-quarter gross domestic product report card coming out Thursday, local stocks may consolidate this week to price in all recent news, ING chief investment officer Paul Joseph Garcia said. The sectors to watch out for, Garcia said, would continue to be the power and mining sectors.

“It’s in the power sector where there are more news particularly on the debates over the tender offer on Meralco,” Garcia said. However, he added that this could be a protracted debate that could reach the courts.

The market is awaiting whether the Philippine Stock Exchange and the Securities and Exchange Commission would compel the group of Manuel V. Pangilinan—which recently countered a P300-per share buyout offer by Henry Sy Jr. on Meralco—to make a tender offer to the public at the same price.

“Mining is also a sector to watch out for because gold is very strong and attempting new highs [in the global commodities markets],” Garcia said.

BPI Securities said in its weekly note that the pullback seen last Friday might extend by another one or two trading days. “However, the general uptrend is likely to be maintained, particularly as we head toward the close of yearend books,” it said.