Globe stock gains on cable consortium entry
By Lourdes O. Pilar, Researcher
SHARES of Globe Telecom, Inc. rose last week, with analysts citing its participation in the Candle Cable System as a key driver.
The Ayala-led telecommunications company was among the most actively traded stocks during the week, with 215,525 shares valued at P353.97 million traded from April 6 to 10, according to data from the Philippine Stock Exchange (PSE).
Trading lasted four days due to the Araw ng Kagitingan holiday on April 9.
Globe shares closed at P1,650 each on Friday, up 2.2% from P1,615 on April 1. This trailed the services index, which rose 3.1%, but outpaced the benchmark PSE index, which gained 1.7%.
Year to date, Globe shares are up 4.2%. This lagged the sector’s 18% gain but exceeded the PSE index’s 0.7% increase.
Unicapital Securities, Inc. Equity Research Analyst Peter Louise D.C. Garnace said Globe’s share price rose week on week following the company’s announcement that it would connect the Philippines to the Candle Cable System.
“One of the highest-capacity submarine cables connecting to Asia’s busiest economies for AI (artificial intelligence) workloads. The integration of Candle to Globe’s domestic fiber network enhances speed, reliability, and enables more enterprise demand,” he said in an e-mail.
Mr. Garnace added that Globe’s share price may also have been supported by improved market sentiment following the US-Iran ceasefire, which eased concerns over a prolonged oil-driven inflation shock.
“This could mitigate pressure on consumer spending, particularly for discretionary services such as internet connectivity,” he said.
“Globe became the most active stock this week after it disclosed that they are pushing for the stage 5 AI maturity which aims to improve and evolve its presence in the country,” said Jash Matthew M. Baylon, analyst at First Resources Management and Securities.
He added that Globe’s move to join the Candle Cable System consortium supported the stock’s performance last week.
“This plan will improve our digital backbone as international connectivity may benefit local users. This move will also ensure faster and more reliable connectivity, which could strengthen its service among businesses and consumers,” Mr. Baylon said in an e-mail.
Globe said it joined the Candle Cable System consortium to help establish the Philippines’ digital backbone by linking the country to submarine cable networks across Asia.
The consortium includes Meta, Japan’s SoftBank Corp., IPS, Inc., NEC Corp., Telekom Malaysia Bhd., and Indonesia’s PT XLSmart Telecom Sejahtera Tbk.
Globe will participate as both an investor and a landing party, with the cable set to land at its Nasugbu station in Batangas, complementing the Philippine landing point in Baler.
The system is expected to begin operations by 2028 and is projected to be among the highest-capacity cable systems in the region, the company said.
Globe also said it is advancing AI adoption across the organization, including the creation of a chief AI officer role.
At the Mobile World Congress, Globe President and Chief Executive Officer Carl Cruz said the company had adopted the GSMA Responsible AI Maturity Roadmap and established an AI Innovation Hub to support responsible and sustainable innovation.
“For me, the measure is simple, if AI helps us serve customers better and widen access to opportunity, then we are using it with purpose, uplifting more Filipino lives and building a #GlobeOfGood,” Mr. Cruz said.
He said Globe is investing in AI-driven tools such as personalized services, self-service platforms, and proactive network monitoring to improve customer experience.
Meanwhile, the United States and Iran agreed to a two-week ceasefire, with mediation by Pakistan, pausing a six-week conflict that had disrupted global oil supplies.
Globe reported revenue of P178.24 billion in 2025, down 1.3% from P180.59 billion in 2024.
Net income fell 4.2% to P23.26 billion from P24.29 billion a year earlier.
“In the coming weeks, we think Globe may revisit its resistance at P1,750 per share. However, once the overall market weakness affects Globe, we are placing our support at P1,600 per share level,” Mr. Baylon said.
Mr. Garnace said Globe may trade sideways next week due to a lack of significant catalysts.
“Nevertheless, we see Globe’s defensive profile cushioning any potential downside risk, with immediate resistance at P1,680 apiece and immediate support at P1,570 apiece,” he said.
