ICTSI shares decline despite developments

SHARES in International Container Terminal Services, Inc. (ICTSI) declined last week despite developments involving its overseas units aimed at boosting capacity.

Data from the Philippine Stock Exchange (PSE) showed that ICTSI was the most actively traded stock from May 19 to 23, with P4.74 billion worth of 11.65 million shares changing hands.

ICTSI shares closed at P404 apiece on Friday, down 1.5% from P410 on May 16. The services index declined by 1.1%, while the benchmark PSE index fell by 0.8%.

Year to date, the listed port operator gained 4.7%, outperforming the 1.3% growth in its sector and reversing the PSE’s 1.8% decline.

Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said ICTSI’s weekly movement may have been driven by global uncertainties, sector-specific headwinds, and profit-taking.

“Persistent inflationary concerns, fluctuating interest rates, and geopolitical tensions continue to weigh on global and regional markets, leading to cautious investor sentiment,” Mr. Arce said in a Viber message.

He added that the services sector remains vulnerable to headwinds such as lower trade volumes and currency volatility, which likely impacted ICTSI along with its peers.

“[As for profit taking], ICTSI’s robust performance over the past year may have prompted profit-taking among short-term investors, adding to selling pressure,” he said.

Still, year-to-date gains may be attributed to strategic expansions, improved operating efficiency, and strong positioning in the global port sector.

“The company’s ability to sustain profitability and grow net income reflects strong management and effective cost controls, which appeal to investors despite broader market challenges,” Mr. Arce said.

He added that recent stock movements also reflect macroeconomic risks and logistics-related developments.

“While global stock markets are grappling with inflationary pressures and mixed macroeconomic data, developments related to shipping and logistics have affected ICTSI. But the company’s positive updates have helped sustain investor confidence,” he said.

Last week, ICTSI said its Mexican unit, Contecon Manzanillo S.A. (CMSA), had acquired two quay cranes and four hybrid rubber-tired gantry cranes as part of its terminal expansion efforts.

Once fully commissioned, the new quay cranes will allow CMSA to simultaneously handle three vessels with lengths of up to 400 meters.

CMSA aims to handle more than two million twenty-foot equivalent units (TEUs) annually.

In Poland, ICTSI is investing over $84 million through the Baltic Container Terminal (BCT) in Gdynia.

The company recently completed Phase 1 of a major upgrade at the Helskie Quay, involving a $42-million investment in a 400-meter quay with a 15.5-meter depth, new crane rails, hydrotechnical structures, roads, and utility networks.

Phase 2 will begin in September, with the commissioning of an additional 100 meters of quay and the entry into service of a newly expanded turning basin.

ICTSI’s attributable net income rose by 14.1% year on year to $239.54 million in the first quarter, while consolidated revenues increased by 12.9% to $773.91 million.

Mr. Arce projects ICTSI’s second-quarter net income at $207 million, supported by continued revenue growth and capacity expansion.

“Continued revenue growth from expanded terminal capacities, coupled with strategic investments, suggests a net income of $207 million in Q2 2025. However, exchange rate volatility and potential operational disruptions remain key risks,” he said.

For the week, Mr. Arce identified support at P395 and resistance near P430. — Abigail Marie P. Yraola