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
