ABOITIZ POWER Corp.鈥檚 (AboitizPower) stock price picked up last week as investors bought shares at a bargain after the previous week鈥檚 low trading.
A total of P3.98 billion worth of 121.76 million AboitizPower shares were traded from Sept. 25 to 29, data from the Philippine Stock Exchange (PSE) showed, making it the most actively traded stock last week.
The stock鈥檚 share price went up by 8.9% week on week to P33.50 apiece last Friday. Year to date, however, the stock went down by 1.6%.
In a Viber message, Globalinks Securities and Stocks, Inc. Senior Trader Mark V. Santarina said that while news about AboitizPower鈥檚 joint venture was positive for the stock, its removal from the PSE index (PSEi) affected its performance, as seen in 鈥渟ubstantial鈥 foreign selling.
AboitizPower was removed from the PSEi on Sept. 26 after it breached the 20% minimum free float requirement.
鈥淚n light of [AboitizPower鈥檚] removal from the index, fund managers are required to rebalance their portfolios, involving the sale of [the company鈥檚] shares. This contributed to the stock hitting a 52-week low [two weeks ago] at P29.40,鈥 he said.
He added that with AboitizPower鈥檚 price trading on the low side, investors might pick up its stock as an attractive bargain.
鈥淲ith this adjustment now behind us, investors may consider picking up [AboitizPower] shares as a potential opportunity,鈥 Mr. Santarina added.聽
The company鈥檚 announcement of its joint venture with Vivant Energy Corp. and Singapore-based Vena Energy added positivity to the stock鈥檚 price last week. The three companies agreed on Sept. 26 to create a wind power plant to be called Lihangin Wind Energy Corp.
The project is projected to start construction by November this year and is expected to open for commercial operations by the first quarter of 2025.
With AboitizPower鈥檚 strong income earnings in the second quarter and first half of the year, Mr. Santarina said he is certain that the company could maintain its growth targets by the rest of the year.
In the second quarter, AboitizPower鈥檚 net income grew by 46.6% year on year to P11.29 billion. Its attributable net income rose by 45% to P10.29 billion.
In the first semester, the company鈥檚 net income surged by 84.6% to P19.7 billion from P10.67 billion In the same period a year ago.
Mr. Santarina projected AboitizPower鈥檚 net income at P6.1 billion for the third quarter and P30.3 billion for the full year.
For the week, Mr. Santarina placed the company鈥檚 support and resistance levels at P32 and P35.70, respectively, adding that AboitizPower鈥檚 stock might continue to trade sideways in the coming weeks.
鈥淎nother significant factor to consider is the global oil price, currently hovering around $90 per barrel, which has the potential to impact [AboitizPower]鈥檚 earnings, despite its strong performance in previous quarters,鈥 he said. 鈥 Bernadette Therese M. Gadon
