ICTSI flat ahead of Holy Week break

RAZON-LED International Container Terminal Services, Inc. (ICTSI) ended flat last week ahead of the Holy Week break.

A total of 4.6 million ICTSI shares worth P1.47 billion were traded from March 25 to 27.

Financial markets were closed from March 28 to 29 in observance of the Holy Week.

Shares closed at P318 apiece on Wednesday, inching down by 0.1% from its P318.40 close on March 22.

Year to date, the stock has surged by 28.8%.

“[Last] week, ICTSI experienced minimal movement ahead of the Holy Week break, indicating a generally neutral market sentiment that led to its sideways trend,” Jemimah Ryla R. Alfonso, an equity analyst at Regina Capital Development Corp., said in an e-mail.

“ICTSI was a touch lower [week on week] as likely driven by quarter-end profit-taking,” China Bank Securities Research Director Rastine Mackie D. Mercado said in an e-mail.

Last week, ICTSI announced plans to expand its shipment monitoring application to include terminals outside the Philippines. Currently, the ICTSI App covers MICT, Laguna Inland Container Terminal, NorthPort, Subic Bay International Terminals, and Mindanao Container Terminal.

According to analysts, this announcement did not heavily impact trading of the stock last week but will be beneficial in the future.

“The price action of ICT [last week] primarily mirrors the overall mood in the market, meaning that the favorable news released during this period failed to make a noticeable impact on its price,” Ms. Alfonso said. “It appears that investors are either indifferent or minimally responsive to these developments.”

“We think that this development is part of ICTSI’s normal course of business as it further expands the reach of its digital solutions in servicing its clients. As such, we think that the stock’s price movement this week may have been more influenced by fund flows and profit-taking,” Mr. Mercado said.

ICTSI’s attributable net income decreased by 17.3% annually to $511.53 million in 2023 from $618.46 million the previous year.

“For the full year 2024, we forecast a 30% [year-on-year] increase in the company’s bottom line. For [the first quarter of 2024], we also see a double-digit growth in its bottom line, just a little below P200 [billion],” Ms. Alfonso said.

Mr. Mercado expects ICTSI to post a net income of $740 million this year.

Timson Securities, Inc. Equity Trader Jervin S. De Celis sees ICTSI at a short-term support of P305 this week.

“No resistance level yet since foreign buying at the last minute of trading sometimes sends the stock price several pesos higher,” Mr. De Celis said.  

Mr. Mercado said the stock is expected to maintain its trajectory within its upward channel this week, with initial support at P310, and resistance at P340. — Karis Kasarinlan Paolo D. Mendoza