Last week, INVESTORS were on the verge after a net loss in 2020 for the Gokongwei-led JG Summit Holdings, Inc.
From 29th to 31st March 2012, a total of 4,69 million JG Summite stocks worth P282,57 million were exchanged.
In keeping with the Holy Week, the financial markets were closed on 1 and 2 April.
The holding company’s stake came to a close at P59.75 percent last Wednesday, up 0.1 percent from its last week of termination of P59.70 per share. To date, inventory has fallen by 16.1%.
“The reinforced movement and travel controls and instability that would be prolonged for a few weeks in April could have disrupted [the JG Summit],” Timson Securities, Inc. Head of Online Trade Darren Blaine T. Pangan said in a message from Viber.
Mr Pangan pointed out, as part of the lower revenue loss of JG Summit, as well as the sales prices affected by the global weakening demand, the air and petrochemical portion of the holding firm.
“A diverse portfolio of conglomerate exposures, including foodstuffs, real estate, aviation transport, petrochemicals and banking, will also be highly dependent on the migration of the country, travel limitations, and other government directives to be enforced throughout the pandemic,” added Mr. Pangan. “Their results would be significant for the year.
JG Summit’s securities trade horizontally last week and “happened flat for the entire year 2020 amid a net loss,” says AAA Southeast Equities, Inc. Analysis Head Christopher John A. Mangun, in a separate text message.
Last Wednesday, J GS Summit announced a combined net loss of P468 million last year, with a one-off charge of its investments in Manila Electric Co, and non-recurring fuel hedging losses. This was a reversal of the attributable net profits for 2019 of P31,29 billion.
In the meantime, the combined sales of the company decreased to P221,6 billion by 27 percent year on year.
JG Summit has stakes in food (Universal Robina Corp.) air traffic (Cebu Air, Inc.), immovables (Robinson Land Corp.); petrochemicals (JG Summit Petrochemical Corp.).
The P22.2 billion net loss of Cebu Air, Mr. Mangun said, has fallen on the bottom line of JG Summit.
“For the past two weeks, the portfolio (JG Summit) traded flat… The bottom line is other blue chips with a minor negative partiality because of CEB weakness,” said Cebu Air, budget carrier operator Cebu Pacific Air’s ticker symbol.
“Within the conglomerate’s revenue turnaround, you will need to know if and when air travel controls are reduced. If the expected cases of COVID-19 (Coronavirus Disease 2019) decrease in the next months, we may see some loss relief in 2021 air traffic at JG Summit,” said Mr Pangan.
He added that market players might have preferred to sit on the sidelines since the trade week before holidays was shortened.
Mr. Mangun has put a large supporter of the stock at P56.00 this week and does not foresee violation of it at P66.60.
At P56.00, Mr. Pangan picked up JG Summit for immediate assistance, at P68.70 and P74.50 for immediate opposition.