Robinsons Retail seen consolidating this week
THE shares of Gokongwei-led Robinsons Retail Holdings Inc. are seen to continue consolidating this week, an analyst said. Diversified Securities Inc. trader Aniceto Pangan in a text message said the stock “will continue to consolidate with foreign investors selling, while [the] economy continues to be affected by the economic backdrop due to weak disposable income and [the] rise in Covid-19 (coronavirus disease 2019) cases.”
Pangan said the sentiment could be tilted with the aggressive vaccine rollout in the country.
“With the vaccine rollout, we may see improvement in the mobility as restrictions will [be] eased, but [the] economy must improve so as to lead to a stronger disposable income that may happen only at [the] second half of this year,” Pangan continued.
Last week, the shares of Robinsons Retail lost P1.30 or 2.38 percent to finish at P53.25 apiece on Friday, prompting the stock to decline by 5.84-percent week-on-week.
Pangan said the price of Robinsons Retail was on a downtrend despite the minimal gains of the main index as it “disclosed to add and pursue share buyback.”
Robinsons Retail also earlier disclosed its full-year earnings, which showed that its net income dropped by almost 30 percent to P3.2 billion in 2020 from P4.6 billion in the previous year.
The company’s consolidated net sales likewise slipped by 7.3 percent last year to P151 billion from P162.9 billion amid the economic effects of the Covid-19 pandemic.
Meanwhile, Pangan’s top three stop picks for this trading week are PLDT Inc., Universal Robina Corp. and D&L Industries Inc. after these corporations posted fourth quarter earnings that were better than the estimates and consensus and as they sustained a growth outlook going to 2021.