By Keren Concepcion G. Valmonte, Reporter
MONDE Nissin Corp. ended last week as the most actively traded stock after investor sentiment was spurred by improvements in its recent earnings report and its inclusion in the latest Morgan Stanley Capital International’s (MSCI) index rebalancing.
Data from the Philippine Stock Exchange (PSE) showed a total of 219.28 million Monde Nissin shares worth P3.72 billion were traded from Nov. 8 to 12, making the stock the most actively traded in the PSE last week.
Since its market debut on June 1, the stock’s price inched up 0.25%.
“[Monde Nissin] was included in the latest MSCI rebalancing. With a lot of speculation leading up to the announcement, it only further pushed trading activity on the stock,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message on Friday.
The MSCI announced last week that Monde Nissin was one of the two firms, with the other being Ayala-led AC Energy Corp., that will be added to the MSCI Philippine index by end-November. No companies previously included in the roster were deleted.
The MSCI prepares research and data to tack and construct indices for global investors.
Meanwhile, Monde Nissin’s improved quarterly earnings also boosted market sentiment last week, Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said.
“After the release of Monde’s earnings in the third quarter [last week], there were improvements in the performance, vis a vis, when compared to the second quarter of this year,” Mr. Pangan said in a text message on Friday.
“This enticed investors to trade on the stock reaching a high of P17.8 in price [on Friday] but profit taking ensued thereafter, closing at P16.96 as they lowered their guidance from mid-single-digit growth to low [to] mid-single digit, thus making it among the most actively traded,” he said.
Last week’s trading session saw Monde Nissin shares start the week declining by 0.12% from its Nov. 5 finish, then improving by 2.8% to close at P16.88 on Tuesday and Wednesday. Thursday saw its share prices decline by 1.66% before posting 2.17% gains on Friday.
In a disclosure to the exchange last week, Monde Nissin reported that it swung to profitability in the third quarter, generating an attributable net income of P2.86 billion from incurring a P2.15-billion net attributable loss in the second quarter. The company said its improved performance in the period was boosted by lower tax and interest rates.
Year on year, the company’s third-quarter attributable net income grew 8.7% to P2.86 billion, while sales for the period went up by 4.1% to P17.69 billion.
For the first nine months, Monde Nissin’s attributable net income declined by 5.3% as revenues declined to 3.6% to P11.1 billion. The company adjusted its revenue growth guidance as costs for raw materials such as power, labor, transportation, among others, increase.
“Near term, it will continue to be challenged on its margin pressures until it could turnaround its Quorn business possible in the medium term,” Diversified Securities’ Mr. Pangan said.
Meat alternatives brand, Quorn, declined by 3.8% from a year ago in the third quarter amid labor shortages in the United Kingdom. However, due to foreign exchange rates, Monde Nissin was able to book a 3.6% increase in revenues to P3.6 billion.
Mr. Pangan said he expects the company to continue reporting improved earnings results to achieve its lowered growth guidance. Meanwhile, Regina Capital’s Mr. Limlingan said the guidance might be possible.
“[Fourth-quarter Christmas] season and looser restrictions will definitely help so there is a possibility,” Mr. Limlingan said.
Mr. Pangan placed Monde Nissin stock’s immediate support at P16.60 and its resistance at P17.80.
“Like most stocks, the perception of how it will perform in [the fourth quarter] will be tied to economic mobility and inflation, among others,” Mr. Limlingan said.