SY-LED BDO Unibank, Inc. was one of the most actively traded stocks last week as market players reacted positively to the company’s full acquisition of shares in SM Keppel Land, Inc. (SMKL).
A total of 9.5 million BDO shares worth P1.21 billion exchanged hands on the trading floor during the March 27-31 week, data from the Philippine Stock Exchange showed.
The lender’s share price closed at P128.50 apiece on Friday, up 1.2% from the P127 close on March 24. Shares in the country’s largest bank in terms of assets picked up by 21.6% since the start of the year.
On Wednesday, BDO’s stock price rose to P128.50 per share from P126.50 on the first trading day of the week. The price remained unchanged until the last trading day of the week.
“BDO’s performance this week was primarily driven by its disclosure which stated that it will acquire the Podium Mall from Keppel. Also, despite the banking turmoil stateside, bank names performed relatively well,” Regina Capital Development Corp. Equity Analyst Arielle Anne D. Santos said in an e-mail.
Ms. Santos said the market took “positively” the disclosure of BDO’s acquisition of Podium Complex and made the company’s stock the fourth most active stock last week.
“I think this showed the public’s optimism towards the banking industry as I think the market is relatively optimistic towards the local banking industry,” added Ms. Santos
In a disclosure to the stock exchange on March 27, BDO said its board of directors had approved the purchase of the entire equity interests of Keppel Philippines Properties, Inc. and Opon-KE Properties, Inc. in SMKL equivalent to 50% of its outstanding capital stock.
With this acquisition, BDO will consolidate its ownership of the Podium Complex, presently 50% owned by SMKL, consisting of BDO’s Corporate Center Ortigas, the West Tower, and the Podium Mall. The Podium Complex is currently occupied by BDO’s offices.
In a separate disclosure on Monday, Keppel Philippines Properties said its board had approved the sale to BDO of its 40% stake in SMKL along with another seller, Opon-KE Properties, which sold its 10% stake.
Keppel, whose ultimate parent is a company incorporated in Singapore, said the consideration for the deal was arrived at “on a willing-buyer, willing-seller basis, taking into account, among others, the agreed value” of the Podium assets.
In 2022, BDO’s consolidated net income increased by 33.4% to P57.05 billion from P42.79 billion a year earlier, driven by robust growth across its core businesses.
Gross customer loans rose by 9% year on year on broad-based growth due to the economy’s reopening. Total deposits rose by 14%, with net interest income growing by 14% to P149.2 billion. Non-interest income climbed by 17% to P71.5 billion.
“For the first quarter and full year 2023, we expect the largest UKB (universal/commercial bank), in terms of asset size, to log at least a high-single or low-single-digit bottom-line growth on a more normalized level of provisioning, coupled with moderate loan portfolio growth amid the reopening of the local economy,” said Ms. Santos.
“On the technical front, it seems like the bullishness of the indicators are easing. Hence, it is likely that BDO will work its way closer to its 50 moving average support at P124.70 per share for this week’s shortened trading week. As mentioned, support is seen at P124.70. On the other hand, the stock’s resistance is at P129.60. per share,” said Ms. Santos.
“Acquisition could be [the] reason and that banks are a buy on dips because they will capture strong Philippine growth prospects,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in an e-mail.
Ms. Ulang pegged BDO’s price support at P90 per share and its resistance at P130 per share. — Lourdes O Pilar
