Philippine Stock Exchange

Market Wrap: Pandemic reality check slaps PSEi back to 6,900

Ralf Rivas
Market Wrap: Pandemic reality check slaps PSEi back to 6,900
Philippine shares slump on rising COVID-19 infections. But Dennis Uy and Manny Villar companies report some recovery in the 3rd quarter.

The Philippine Stock Exchange index (PSEi) fell 0.7%, keeping it at the 6,900 level on Monday, November 16, as COVID-19 cases continued to rise around the world.

The financials and industrial subindices managed to stay in the green, inching up 0.1% and 0.4%, respectively.

“Philippines shares slumped on fears that rising coronavirus infections may slow the recovery in the global economy and fuel demand. Increasing coronavirus infections globally reignited concerns about the economic toll from the pandemic,” said Luis Limlingan of Regina Capital.

A total of 2.36 billion shares valued at P8.77 billion changed hands. Foreigners sold more shares than they bought, bringing net foreign selling to P1 billion.

Stocks of the Bank of the Philippine Islands were the most actively traded, gaining 1.6%, while Premiere Horizon Island soared 49.3%.

Earnings

GT Capital – It saw a 69% dip in its 9-month profits to P3.7 billion from the P12 billion a year ago.

GT Capital, however, saw a significant recovery in the 3rd quarter, with core income soaring 71% to P574 million from the P335 million in the 2nd quarter.

Contributors to the conglomerate’s profits were Metrobank, with a net income of P11 billion, and Toyota Motor Philippines, with profits of P2.2 billion.

“While the July results showed early signs of recovery, the return to modified enhanced community quarantine in August abruptly reversed the growth momentum. Nevertheless, we continue to push our way back to pre-COVID-19 performance levels, while astutely managing our operating costs across all lines of business,” GT Capital president Carmelo Maria Luza Bautista said.

AllHome – Manny Villar’s AllHome saw a recovery in earnings during the 3rd quarter, as the easing of quarantine restrictions significantly improved sales.

Its 3rd quarter profits soared to P312 million, much higher than the P5 million it earned in the 2nd quarter.

On a year-to-date basis, net profit was down by 21% to P588 million.

“We remain bullish with the home improvement industry for the remaining months of the year. The level of sales has greatly improved in the 3rd quarter and in AllHome’s case, our 4th quarter sales historically are our highest, benefiting from the holiday season,” said Villar.

Chelsea Logistics – Dennis Uy’s logistics and shipping arm saw a net loss of P2.6 billion in the first 9 months of the year, a significant reversal from the P20-million net profit posted in the same period last year.

Its 9-month revenues dipped by 35% to P3.3 billion from the P5.15 billion a year ago, as passenger travels dipped and cargo movement declined.

Chelsea said it continues to work on stemming the losses and improving its financial health through “workforce rationalization, improved vessel utilization, enhanced revenue management, cost-cutting strategies, and suspension of uncommitted capital expenditure programs.”

“Despite the disappointing results in the 3rd quarter, we continue to prepare the Group for a prospective recovery we see by the 2nd half of 2021. These measures to improve Chelsea’s financial health are already starting to make an impact and these will allow the Group to be best prepared to capture that recovery,” Chelsea Logistics president and chief executive officer Chryss Alfonsus Damuy said. – Rappler.com

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Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.