PLDT shares dip on planned capex cut, search for new president, and market sentiment

PLDT Inc. was highly traded on the local stock market last week as investors closely monitored the search for the telecommunications company’s new leader and its potential capital expenditure (capex) cuts, according to analysts.

Data from the Philippine Stock Exchange (PSE) showed that a total of 244,570 shares, valued at P312 million, were traded from Jan. 15 to 19, making PLDT the 19th most actively traded stock last week.

Shares in the Pangilinan-led telecom giant fell by 1.6% week on week, with the stock closing at P1,270 per share compared to its closing price of P1,290 on Jan. 12.

Year to date, the stock has declined by 0.7%.

Mark V. Santarina, senior trader at Globalinks Securities and Stocks, Inc., attributed PLDT’s price movement to the company’s announcement of the active search for a new chief.

“PLDT continues its search for a new CEO following Panlilio’s retirement last December. This quest has contributed to the stock trading sideways, with investors eagerly anticipating positive development on the management front,” Mr. Santarina said in a Viber message.

Manuel Antonio M. Castro, equity analyst at Regina Capital Development Corp., said in an e-mail: “We can attribute the stock’s performance to investors’ sentiment towards the telco industry.”

“Telco has been rather slow,” he added.

PLDT Chairman, President, and Chief Executive Officer Manuel V. Pangilinan has said that the company may lower its capital expenditure budget for this year.

“The telco industry in general has been focusing on reducing capex as aggressive expansion subsided, with the telco industry already at its maturity without any significant catalysts on the horizon,” Mr. Castro said.

He also expects low single-digit growth for PLDT’s net income for this year.

Notably, analysts remain upbeat about the company’s growth despite challenges in the industry.

According to Mr. Castro, market players should consider PLDT, as it is one of the telecom stock companies that offers the highest dividends despite facing growth difficulties.

For the third quarter, PLDT’s net income attributable to the parent declined by 12% to P9.43 billion from P10.7 billion in the same period last year.

Its revenues grew by 1.9% to P52.32 billion from P51.35 billion last year.

According to Mr. Santarina, PLDT’s fourth-quarter net income could reach P26.7 billion, while full-year earnings are expected to be P33.5 billion.

He also mentioned that PLDT remains a safe investment option due to the country’s increasing demand for internet services.

He placed the support and resistance levels at P1,260 and P1,291, respectively.

Mr. Castro pegged the company’s stock support at P1,250, with resistance at P1,300.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Mariedel Irish U. Catilogo