By Kenneth H. Hernandez
SHARES of International Container Terminal Services, Inc. (ICTSI) declined last week amid global trade policy uncertainties.
ICTSI was the most actively traded stock in terms of value, with 3.5 million shares worth P1.37 billion being traded on Dec. 23 to 27. The port operator’s shares closed at P386 on Friday, down 1% or 4 centavos from a week earlier.
“The Federal Reserve projected a significantly slower pace of rate cuts next year in response to rising inflation and robust economic growth,” Claire T. Alviar, assistant manager for Research and Online Engagement at Philstocks Financial, Inc., said in a Viber message. “This could negatively affect global economic growth, thereby impacting ICT’s operations.”
“Moreover, many investors were cautious at the moment, waiting for the policies to be implemented by the new administration in the US,” she added.
Aniceto K. Pangan, an equity trader at Diversified Securities, Inc., said the company was in a consolidation phase during the week. “This was driven by the uncertainties behind the new US President’s trading policy, which may affect trading globally, especially his protectionist stance policy,” he said in a Viber message.
US President-elect Donald J. Trump has vowed to increase tariffs on Canada, Mexico and China unless they addressed illegal migration and drug trafficking. He also threatened tariffs on countries that plan to undermine the US dollar by using alternative currencies.
ICTSI has earmarked $100 million and secured a 25-year concession extension to expand the terminal capacity of Mindanao port in Misamis Oriental. Ms. Alviar said there is positive sentiment about the stock as a result.
“The extension of the concession period boosted investor sentiment, as these contracts ensure the long-term stability of ICTSI’s business operations,” she said. “Additionally, plans to expand terminal capacity further enhanced optimism, given its potential to drive revenue growth in the future.”
Mr. Pangan said the port expansion would add more growth opportunities for the company in southern Philippines.
ICTSI’s attributable net income increased 24.2%, to $212.03 million in the third quarter from a year earlier. This brought its nine-month income to $632.58 million, a 30.6% increase.
Mr. Pangan expects the company to post $253.2 million in earnings this quarter and $886.2 million for the full year.
Ms. Alviar put the support level for the ICTSI stock at P380, psychological resistance at P400 and resistance level at P420. The immediate support is P375 per share, while immediate resistance is P400 each, he added.
