GT Capital shares up amid positive outlook

GT Capital Holdings, Inc.’s stock improved week on week amid a positive income outlook and after a previous sell-off offered discounted entry for investors.

Data from the Philippine Stock Exchange (PSE) showed a total of 491,420 shares of GT Capital worth P271.69 million were traded from Dec. 4 to 7, making it the 15th most actively traded stock on a four-day trading week. The stock also closed 8th among the most active stocks last Thursday.

Trading was cut short last week due to the feast of the Immaculate Conception of Mary on Friday.

Shares of the Ty-led holdings company picked up 4.1% week on week, closing at P557 apiece last Thursday from its P535 closing price on Dec. 1.

For the year, GT Cap.’s stock surged by 28%.

“In late November, GT Capital Holdings dipped due to foreign sell-offs, offering a discounted entry for December,” Globalinks Securities and Stocks, Inc. Senior Trader Mark V. Santarina said in a Viber message.

The P535 closing on Dec. 1 was the lowest for the stock since the P528 closing on Nov. 3.

“Investors are optimistic about [GT Capital’s fourth-quarter] performance, expecting contributions from Toyota Motor Philippines Corp. and a higher stake in Metro Pacific Investments Corp.,” he added.

Optimistic earnings outlook for the firm could drive the stock upward this week, Mr. Santarina said.

The local market declined last week by 71.08 points as it took cues from Wall Street and Asian markets awaiting data or new drivers.

Locally, the country’s inflation for November eased to 4.9%, the slowest in a year and eight months or since the 4.2% in March last year.

“As a blue-chip stock with robust subsidiary earnings, GT Capital Holdings stands out. The current easing of inflation is a positive factor for equities, potentially aiding the stock’s upward momentum,” Mr. Santarina said.

“Being part of the index, GT Capital could benefit from the December Santa Claus rally, further supporting the likelihood of a price increase,” he added.

The Ty-led holdings company reported a third-quarter net income of P28.95 billion, up by 11.7% quarter on quarter and 66.1% from the same quarter last year.

Attributable net income likewise surged by 54.5% year on year to P23.09 billion. However, quarter on quarter, it dropped by 2.2% to P6.5 billion from P6.65 billion in the second quarter.

Mr. Santarina placed the firm’s fourth-quarter and full-year net income at P5.3 billion and P23.5 billion, respectively, adding that GT Capital will be able to meet its targets this year.

He said that being one of the biggest holdings firms in the country, GT Capital has experienced growth this year as the country fully reopened.

“Despite commendable advancements in its automotive, insurance, and banking sectors, the corresponding stock valuation has not fully realized this success,” he said.

For the week, Mr. Santarina placed his support and resistance for the stock at P517 and P579, respectively.

“We maintain a positive outlook on the Philippine economy, expecting its growth to persist into the next year, a favorable prospect for [GT Capital].” — Bernadette Therese M. Gadon