PLDT, Globe shares dip on third telco’s naming
PLDT, Inc. and Globe Telecom’s share prices have fallen after the government named a provisional third telco player last November 7, shedding 16.79 percent and 8.68 percent, respectively.
Pangilinan-led PLDT, however, appears worse off as year-to-date, its shares are down 22.18 percent while Globe’s stocks are up 2.67 percent.
PLDT’s shares remained unchanged at P1,165 on Friday from previous day while Globe rose 3.22 percent or P60 to P1,925 amid a 1.88-percent rise for the benchmark Philippine Stock Exchange index.
The latest close for PLDT is well below a P1,601 peak hit on January 29 but is still better than the year-to-date low, posted on June 22, of P1,133.
Globe, meanwhile, is also down from the year- to- date high of P2,330 recorded on October 8 but is above May 4’s trough of P1,475.
“The shares of telecommunications duopoly Globe Telecom, Inc. and PLDT, Inc. took a big hit by the time the provisional third telco player was announced,” Philstocks Financial Inc. Research Associate Japhet Tantiangco noted.
The government has named the Dennis Uy-led Mindanao Islamic Telecommunications Corp. (Mislatel) consortium — comprised of Udenna Corp., subsidiary Chelsea Logistics Holdings Corp. and China Telecommunications Corp. — as the provisional third telco.
On the day Mislatel won, PLDT’s shares dove almost 6 percent to P1,321 while Globe saw its stocks
plummet 8.91 percent to P1,920.
The third telco announcement “overshadowed Globe’s sound third quarter/nine-month corporate earnings report which came prior the day,” Tantiangco said.
Globe’s January-September net income grew 13 percent to P14.64 billion on the back of increasing revenues from data services across business units.
“I believe this is because investors are factoring in the tighter competition that the Mislatel consortium could bring once it enters the industry,” he explained.
PLDT’s shares have been spiraling down, meanwhile, as nega-
for January-September.
PLDT’s nine-month net income dipped 26 percent to P16.33 billion as other business channels
- solidated revenues rose 3 percent to P123.15 billion.
Regina Capital Development Corp. head of sales Luis Limlingan said Globe and PLDT were facing “probably a little more price adjustment with respect to the news [looking forward].”
“I think they’ll generally track the sentiment of the market as a whole after being sold down aggressively beginning of the month,” he added. The naming of provisional third telco player hit the shares of telco duopoly PLDT, Inc. and Globe Telecom.
First Grade Finance Managing Director Astro Del Castillo noted that some investors had abandoned PLDT and Globe in favor of Uy-led
develop,” he said.
For now, Del Castillo said that PLDT and Globe were “focused on TOTAL LIABILITIES TOTAL EQUITY FINANCIAL RATIOS