[ bworldonline.com ]
FOREIGNERS loaded on Ayala Land, Inc. (ALI) stocks last week,
making it the most actively traded stock in the local bourse during the
period.
ALI had the highest value turnover last week, with P2.519 billion
worth of 57.82 million shares exchanged hands on the trading floor from
Aug. 20 to Aug. 24, data from the Philippine Stock Exchange showed.
Its shares closed at P43.9 apiece on Friday, down 0.9% from the
previous day, but gained 3.29% on a week-on-week basis. For the year,
ALI shares are down 3.52%.
“We can attribute this to foreigners going back to the local market.
Foreigners are looking for highly liquid stocks, with high recurring
income contribution, preferably in a growing industry, and with an
adequate share price upside. All of these points to ALI,” said John
Paolo D. Ayson, equity research analyst at RCBC Securities, Inc.
Stock market data showed net buying on ALI amounted to P693.34
million from Aug. 20 to Aug. 24, a reversal of the P23.51-million net
selling a week before.
Mr. Ayson noted ALI as one of the most liquid stocks as well as
having a high recurring income from its malls and office businesses,
which is supported by the property sector’s “fast pace” at around 17%.
ALI’s latest earnings report showed attributable profit expanding by
34% to P7.97 billion in the second quarter from P5.95 billion in the
same period last year. This brought its January-June attributable profit
up 18% to P13.5 billion.
Jeng T. Calma, trader at A&A Securities, Inc. said that an
immediate reason for capturing ALI stocks would be its cash dividend
distribution on Sept. 6, with a dividend rate at 0.2%. She also said
ALI’s stock price settled at a “buying opportunity” price last week,
following a sharp dip from a high of P43.20 to a low of P40.35 from Aug.
9 to Aug. 14.
“Inaabangan talaga ang malaking drop ng ALI sa price, kasi mabilis sya usually mag-rebound. (Buyers would usually lookout for a big dip in ALI’s stock price, as it usually rebounds immediately),” she said.
For this week, Ms. Calma expects ALI to stay at its P42 and P46
support and resistance levels, respectively. “This week is another
cycle, after ALI reached a new high last week. Investors will lie low in
the following days,” she said.
Mr. Ayson also sees ALI trading between the support and resistance
levels of P42 and P46, respectively, this week. This could still go up
by 18% to his target price of P51.00 in the next 12 months, he said.
Mr. Ayson’s earnings forecast for ALI was at 17% this year, with growth coming from across all its segments.
Under its 2020 Vision, ALI targets to grow 20% annually to hit a net
income of P40 billion from its residential development and leasing
segments. — C.V. Olano
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