AboitizPower stocks pick up on bargain hunting, joint venture

ABOITIZ POWER Corp.’s (AboitizPower) stock price picked up last week as investors bought shares at a bargain after the previous week’s low trading.

A total of P3.98 billion worth of 121.76 million AboitizPower shares were traded from Sept. 25 to 29, data from the Philippine Stock Exchange (PSE) showed, making it the most actively traded stock last week.

The stock’s share price went up by 8.9% week on week to P33.50 apiece last Friday. Year to date, however, the stock went down by 1.6%.

In a Viber message, Globalinks Securities and Stocks, Inc. Senior Trader Mark V. Santarina said that while news about AboitizPower’s joint venture was positive for the stock, its removal from the PSE index (PSEi) affected its performance, as seen in “substantial” foreign selling.

AboitizPower was removed from the PSEi on Sept. 26 after it breached the 20% minimum free float requirement.

“In light of [AboitizPower’s] removal from the index, fund managers are required to rebalance their portfolios, involving the sale of [the company’s] shares. This contributed to the stock hitting a 52-week low [two weeks ago] at P29.40,” he said.

He added that with AboitizPower’s price trading on the low side, investors might pick up its stock as an attractive bargain.

“With this adjustment now behind us, investors may consider picking up [AboitizPower] shares as a potential opportunity,” Mr. Santarina added.

The company’s announcement of its joint venture with Vivant Energy Corp. and Singapore-based Vena Energy added positivity to the stock’s price last week. The three companies agreed on Sept. 26 to create a wind power plant to be called Lihangin Wind Energy Corp.

The project is projected to start construction by November this year and is expected to open for commercial operations by the first quarter of 2025.

With AboitizPower’s strong income earnings in the second quarter and first half of the year, Mr. Santarina said he is certain that the company could maintain its growth targets by the rest of the year.

In the second quarter, AboitizPower’s net income grew by 46.6% year on year to P11.29 billion. Its attributable net income rose by 45% to P10.29 billion.

In the first semester, the company’s net income surged by 84.6% to P19.7 billion from P10.67 billion In the same period a year ago.

Mr. Santarina projected AboitizPower’s net income at P6.1 billion for the third quarter and P30.3 billion for the full year.

For the week, Mr. Santarina placed the company’s support and resistance levels at P32 and P35.70, respectively, adding that AboitizPower’s stock might continue to trade sideways in the coming weeks.

“Another significant factor to consider is the global oil price, currently hovering around $90 per barrel, which has the potential to impact [AboitizPower]’s earnings, despite its strong performance in previous quarters,” he said. — Bernadette Therese M. Gadon