Holcim PH shares slump 8 percent
LISTED Holcim Philippines Inc.’s shares slumped along with the local bourse last week due to the increased worries on the Delta variant.
The cement manufacturer plummeted by 8.02 percent or 60 centavos to close at P6.88 apiece on Friday, prompting its shares to decline by 7 percent on a weekly basis.
Meanwhile, the Philippine Stock Exchange index declined by 0.51 percent or 34.1 points to conclude at 6,693.83 on Friday amid increased selling pressure due to concerns on the Delta variant.
Diversified Securities Inc. trader Aniceto Pangan in a text message said the local detection of the Delta variant is feared to lead to the reimposition of stricter quarantine restrictions and hamper construction activities.
The Department of Health has reported 16 additional cases of the Delta variant in the country on Friday, including 11 local cases, bringing the current total to 35.
Pangan sees the stock continuing to correct unless the Delta variant will be contained and spending through the infrastructure program will be sustained.
Last week, Holcim Philippines also disclosed that it would invest P210 million projects as a bid to further improve its business and sustainability performance.
Sinoma CBMIPH Construction Corp. was awarded the contract to install a drying facility at Holcim’s La Union plant and a drying facility at its Misamis Oriental plant.
The facility will reduce the fuel consumption of the La Union plant by reusing hot gases from operations to dry materials instead of a separate equipment, while the Misamis Oriental project will enable the plant to increase mineral additives to reduce carbon footprint and save natural resources in making cement.
The La Union project is expected to be completed by the first quarter of 2022, while the Misamis Oriental project is scheduled at the end of October 2021.
“With its plan to improve its plant operations, positive outlook will be sustained in the long term on post pandemic crisis,” Pangan said.
Holcim’s net income climbed to P909.35 million in January to March, up from P501.54 million in the same period last year, while its net sales shed 6 percent to P6.8 billion from P7.3 billion year-on-year.
The firm attributed the slip in revenues to lower volume, as cement demand and construction activity remained impacted by the global pandemic.