AYALA-LED ENERGY firm ACEN Corp.鈥檚 shares went down last week as the country鈥檚 slower-than-expected economic growth affected market sentiment.
Data from the Philippine Stock Exchange (PSE) showed a total of P342.49 million worth of 64.90 million in ACEN shares were traded from Aug. 7 to 11, making it the 15th most actively traded stock in the local bourse last week.
The Ayala-led energy company鈥檚 share price fell by 7.1% week on week after finishing at P5.11 per share on Friday from its P5.50 closing last Aug. 4. Year to date, it has dropped by 32.9%.
鈥淭he market鈥檚 overall negative sentiment 鈥 brought about mainly by disappointing second quarter data 鈥 likely dragged on ACEN鈥檚 stock price. This raised investor concerns that full-year growth will fall below the government鈥檚 target of 6-7% and drag the performance of listed companies,鈥 Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in an e-mail.
Philippine gross domestic product (GDP) growth to its slowest pace in to more than two years to 4.3% in the second quarter amid the lagged effect of rising borrowing costs and government underspending. It was slower than the 6.4% growth in the previous quarter and the 7.5% last year.
For Luis A. Limlingan, head of sales at Regina Capital Corp., the slower worldwide growth would likely sway the energy sector as public expenditure may continue to narrow.
Meanwhile, Mr. Arce said despite the decline, the energy company鈥檚 outlook is still optimistic and may drive the stock鈥檚 uptrend in the next quarters.
鈥淎CEN鈥檚 current price is still a modest valuation for a company with its growth potential and will be a good investment for long-term investors,鈥 he said.
The energy company announced last week that it signed a renewable energy contract area utilization agreement with the Laguna Lake Development Authority to lease 800 hectares of renewable energy portfolio.
The agreement is set to develop a large-scale floating solar project that will be located on Laguna Lake and is expected to add 1,000 megawatts (MW) to its renewable capacity.
The energy company has around 4,000 MW of attributable capacity, which comprises 98% of the total capacity in the Philippines, Vietnam, Indonesia, India, and Australia. It is also targeting to expand its renewable energy portfolio to 20 gigawatts by 2030.
Its net income attributable to equity holders of the parent company rose by 24% to P2.21 billion in the second quarter. Consolidated revenues also climbed 32.3% to P11.33 billion during the same period.
This brought ACEN鈥檚 attributable net profit to P4.23 billion in the first semester, almost double the P2.18 billion in bottom line last year.
Its top line also increased by 28.1% to P20.47 billion in the January to June period.
Mr. Arce expects ACEN鈥檚 net income to reach P2.6 billion in the third quarter, while full-year earnings are estimated at P9.3 billion.
Mr. Limlingan placed the company鈥檚 support level at P5.05 and resistance at P5.30.
鈥淔or [this] week, support is seen at P5.00, while resistance is at P5.50,鈥 Mr. Arce said. 鈥 Mariedel Irish U. Catilogo
