Emperador shares gain nearly 9%
ANDREW Tan-led Emperador Inc. concluded in the green, following the results of the latest index review of the Philippine Stock Exchange (PSE).
The shares of the listed distillery rose by 30 centavos or 1.25 percent to close at P24.30 apiece on Friday, prompting the stock to end with an 8.97-percent gain week-on-week.
Diversified Securities Inc. trader Aniceto Pangan attributed the performance of Emperador to the anticipation of the stock’s reinclusion in the 30-member PSE index (PSEi).
PSE on Friday announced that Emperador, along with Monde Nissin Corp., would become part of the PSEi starting February 14, after its January to December 2021 stock performance review.
The two companies would replace Bloomberry Resorts Corp. and Robinsons Retail Holdings Inc. in the main index.
Meanwhile, Pangan expects the stock to consolidate this trading week, given its overbought level.
“We may expect the stock to consolidate from an immediate support of P23.60 per share to an immediate resistance of P25.05 per share,” he said in a text message.
Despite the consolidation, however, Pangan noted that the stock could still move at an upward bias given the latest index review.
Pangan said the release of the company’s fourth quarter earnings could further boost the sentiment towards the shares of Emperador, after the “government eased its restrictions going to the Christmas holiday season as manifested by the GDP (gross domestic product) growth in the fourth quarter.”
Emperador posted a normalized net income to owners of P7.9 billion in the first nine months of 2021, a 35-percent improvement year-on-year.
Its net profit to owners also climbed 24 percent during the nine-month period to P7.3 billion, even after the deduction of a noncash deferred tax expense.
The company’s revenues likewise finished 11-percent higher in January to September to P38.4 billion last year.