MANILA, Philippines - Share prices are expected to open slightly higher on Monday, tracking global rallies in the weekend, and on expectations of better second quarter earnings among local companies, analysts said.

The market may also get a boost as investors hope  that President Benigno Aquino III will outline concrete measures to curb poverty while trimming the country's swelling budget deficit in his first state of the nation address (SONA), also on Monday.

Last week, the government's budgetary shortfall from January to June already exceeded the first half goal, as collections of the Bureau of Internal Revenue and the Bureau of Customs goal fell short of targets.

On Friday, the main index of the Philippine Stock Exchange ended flat at 3,416.10.

"The market is likely to resume buying given the optimism in overseas markets. Early results of corporate earnings overseas point to better earnings, and hopefully, we will have a similar scenario here," said Astro del Castillo, managing director of First Grade Holdings Inc.

Global markets rose last Friday after the release of Europe's stress tests on its banks, which showed that the major players in the region are sufficiently capitalized to absorb a double-dip recession, if it ever takes place.

Investors this week will be keeping an eye on corporate earnings, particularly power distributor Manila Electric Co. which is expected to post its second quarter earnings on Monday.

Higher energy sales, along with higher power rates, boosted Meralco's first quarter consolidated core net income at P2 billion, a hefty 135% rise from a year ago.

On August 6, the Aboitiz Group will announce its first half results.

"Investors are somehow looking for opportunities in the market in anticipation of the second quarter results, and the sentiment is that companies are able to sustain earnings, especially now that the risks are less compared to last year," said del Castillo.

Del Castillo said investors will also take note of Aquino's SONA pronouncements which takes place after the market closes.

"If there are clear plans on how to address critical economic issues, especially the budget deficit, that would be a plus factor for the markets this week." Rocel Felix, abs-cbnNews.com