The expansion of AGRESSIVE fifth generation (5G) technology boosted much of the trading activity at Globe Telecom, Inc. led by Ayala last week.
Globe was the tenth most actively traded stock last week with 649.91 million pesos valued at 333,720 shares traded July 5-9, according to Philippine Stock Exchange data.
Globe shares closed at 1,965 P each on Friday, up 4.2% from last week. Since the start of the year, the stock has fallen slightly by 2.6%.
“A possible rotation of the games reopening to COVID-proof stock likely supported Globe’s share price last week. The index as a whole has been sold lower, but Globe has managed to maintain a stable consolidation range, ”Luis A. Limlingan, sales manager at Regina Capital Development Corp., said in an email.
He added that investors have turned to Globe, seeing that its operations are “relatively less affected by the pandemic”.
“There remains a strong demand for data-related services in the country, particularly domestic broadband – a segment that Globe continues to aggressively develop,” he said.
Timson Securities, Inc. stock trader Darren Blaine T. Pangan said investors may have responded positively as Globe expects double-digit growth in 5G subscribers this year.
“Market players may have chosen to position themselves in the company after its aggressive management guidance reports,” he said in a Viber message.
On June 23, Globe took out a long-term loan of 12 billion pesos – 5 billion pesos from China Banking Corp. and 7 billion pesos from the Philippine National Bank – to finance its capital expenditures.
It is also forecasting capital spending of 70 billion pesos this year to support the modernization of its network and the expansion of 5G and fiber technology nationwide.
The company said last month that it has at least 88% outdoor 5G coverage in the National Capital Region, with the Central Business District (CBD) of Bonifacio Global City and Ortigas CBD having the most coverage. higher at 97%, followed by Makati CBD with 96% and Pateros with 92%.
Globe has announced a further expansion of its list of international 5G-ready partner companies ahead of the travel industry’s gradual recovery from the COVID-19 pandemic.
The phone company has partnered with Bulgarian Vivacom, Vietnamese Viettel and Chinese China Mobile to provide customers traveling to these locations with 5G roaming services. By August, it will also partner with Tele2 from Sweden and Vivo from Brazil.
In the first three months of the year, Globe’s revenue grew 2.5% year-on-year to 37.31 billion pesos. Its attributable net income jumped 11% to 7.31 billion pesos during the same period.
Mr. Limlingan expects “significant growth” in Globe’s data services and an increasing contribution to its revenue.
Data accounted for nearly 60% of Globe services revenue in the first quarter, while broadband accounted for nearly 20% of the share.
“Total service revenue growth could reach the high numbers this year if everything is at an optimal level,” Limlingan said.
Mr Limlingan placed the support and resistance levels for the stock this week at P1,920 and P2,000, respectively.
“With Globe briefly rallying from its base above the P1,000 area, the stock appears to have consolidated for a few days above the P1 930 level with P1 970 being the closest resistance area,” said Mr. Pangan.
“We will see if the support at P1930 holds in the next few days,” he added. – Nadine Mae A. Bo