AC ENERGY Corp. (ACEN) was one of the most actively traded stock last week following a good market sentiment for the energy company.
Data from the Philippine Stock Exchange showed a total of 71.77 million shares worth P518.91 million were traded from Nov. 28 to Dec. 2, making it the 20th most actively traded stock last week.
Shares in the Ayala-led energy company increased by 4.4% week on week, finishing at P7.36 apiece on Friday from its closing of P7.05 on Nov. 25. The stock dipped by 33.1% since the beginning of the year.
“Much of ACEN’s share price volatility this week was influenced by market sentiment. The Federal Reserve’s comments about becoming less hawkish this December boosted sentiment during the start of the week, which led to buying across the board,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in an e-mail.
US Federal Reserve Vice-Chair Lael Brainard said in November that the central bank was considering slowing down its interest rate hikes.
So far, the Fed has raised a total of 375 basis points since March.
In a Viber message, Mercantile Securities Corp. Analyst Jeff Radley C. See attributed the company’s growth to its developments, including acquisitions made, and hence dominance in the industry.
“Investors should look at the long-term direction of the company and not just the short-term price movements. They should be looking for more renewable energy projects in the future,” he said.
Mr. Limlingan said that market investors should track the energy company’s developments locally and internationally.
“AC Energy is aggressively expanding both internationally and locally. Investors should monitor the acquisition and/or completion of these developments in different regions across the globe to get a sense of how the company is fairing amid volatile macroeconomic and geopolitical times,” he said.
In a disclosure on Thursday, the stock company announced its acquisition of Sinocalan Solar Power Corp. through a share purchase agreement with Sungrow Power Renewables Corp. and Havilah AAA Holdings Corp., the developer of a 60-megawatt-peak solar power plant based in Pangasinan.
The completion of acquisition is expected to take place by Dec. 15, 2022, subject to agreed conditions precedent.
For Mr. Limlingan, a P1.8-P2-billion net income attributable to parent is likely to be seen in the fourth quarter, while P5.5-P6 billion for the full year.
He placed ACEN’s support at P6.86, and resistance at P7.50
Meanwhile, Mr. See expects its resistance levels to place at P7.50 and P8.30, while support levels at P7.00 and 6.50. — Mariedel Irish U. Catilogo