2014 PSEi leaders and laggards
Why is there a need to understand some of these publicly listed companies? When all is said and done, these companies are businesses, where growth and sustainability is driven by earnings.
YEAR 2014 ended with the Philippine Stock Exchange index (PSEi) up 22.76 percent to 7,230.57 points. Of the 30 companies on the PSEi, 24 registered positive returns, one stayed the same, and five had negative returns. In addition, this marks the sixth consecutive year that PSEi is up.
Which of the publicly listed PSEi companies fared the best, and which are lagging a bit? Here is a quick glance:
Top gainers
- First Gen Corp. is up 81.88 percent to P25.50 from P14.
- JG Summit is up 69.23 percent to P66 from P39.
- Universal Robina Corp. (URC) is up 66.10 percent to P196 from P118.
- BDO Unibank (BDO) is up 54.65 percent to P109.80 from P71.
- Energy Development Corp. (EDC) is up 49.36 percent to P8.20 from P5.49.
- Semirara Mining (SCC) is up 48.95 percent to P142 from P95.30.
- Bloomberry is up 41.71 percent to P12.4 from P8.75.
- Megaword is up 41.39 percent to P4.68 from P3.31.
- DMCI Holdings is up 35.34 percent to P15.70 from P11.60.
- GT Capital is up 33.59 percent to P1,032 from P773.
- Ayala Land Inc. (ALI) is up 32.16 percent to P33.7 from P25.5.
- Ayala Corp. is up 32.06 percent to P694 from P526.
Laggards
- Petron Corp. is down 24.82 percent from P14.1 to P10.6.
- LT Group is down 21.68 percent from P15.5 to P12.14.
- Alliance Global is down 14.42 percent from P26.35 to P22.55.
- Aboitiz Equity is down 4.01 percent from P54.9 to P52.7.
- Emperador is down 2.63 percent from P10.66 to P10.38.
- Meralco did not change at P256.
- Globe Telecom is up 4.85 percent to P1730 from P1650.
- Metro Pacific Investments is up 5.26 percent to P4.6 from P4.37.
What are some of the businesses of these publicly listed companies?
First Gen Corp. is a subsidiary of the Lopez family’s First Philippine Holdings and engaged in the power and energy business.
JG Summit Holdings Inc. is the holding company of Gokongwei family and is into the businesses of air transport, banking, food and real estate. Some of its subsidiaries are Robinsons Land Corp. and URC.
BDO is the banking arm of SM group of companies owned by the Sy family.
EDC is engaged on the geothermal energy business.
Bloomberry Resorts is into the gaming business and owns Solaire Resort & Casino.
DMCI is the holding company of Consunji family. SCC is among its subsidiaries.
GT Capital is the holding company of Ty family. Metrobank is among its subsidiaries.
ALI is a subsidiary of Ayala Corp. owned by the Ayala family.
Petron is a subsidiary of San Miguel Corp. It focuses on the oil refining and marketing of petroleum business. Since there was a significant drop on the global crude oil prices, it affected Petron (just as oil companies from other countries are also negatively influenced).
LT Group is the holding company of Lucio Tan and is engaged in banking, beverage, real estate and tobacco businesses. Asia Brewery, Eton Properties, Philippine National Bank and Tanduay are among its contributing companies.
Alliance Global is the holding company of Andrew Tan and is engaged in food and beverage, gaming, real estate and tourism businesses. Some of its subsidiaries are Emperador, Megaworld and Travellers.
Aboitiz Equity is the holding company of Aboitiz family and is engaged in banking, food, power and transport businesses. Aboitiz Power is one of its subsidiary.
Why is there a need to understand some of these publicly listed companies? When all is said and done, these companies are businesses, where growth and sustainability is driven by earnings. Short-term price fluctuations may occur for one reason or another or even for no reason at all. However, when the long-term viability of the business becomes apparent to the big-money movers, the stock will be recognized by more demand and eventually, higher stock price in due time.
Some more interesting facts:
Even laggards such as Globe Telecom provided a return much better than typical bank deposits.
- Outside of PSEi, the best and worse 2014 companies are:
- Premium Leisure gained 674.55 percent to P2.13 from P0.28.
- Agri Nurture lose 59.62 percent to P2.1 from P5.2.
What should we expect on 2015? Expect lots of volatility, similar to what happened during the last quarter of 2014. The resistance of 7,700 points will be tested to potentially reach new highs. However, there is also a possibility that index can retrace to the 6,000 range. Keep an eye on the other global markets (particularly DOW Jones which is trading at expensive valuation), as what happens on the global markets may cause a chain reaction to PSEi.
Happy New Year and happy investing!
Christopher Lim is a Registered Financial Planner of RFP Philippines. He is a co-founder of www.pinoyFIQ.com and an investor on Financial and Real Estate industries. He is also a Coach and Resource Speaker on Financial Management, Investments (such as Bonds, Mutual Funds, Stocks, and Derivatives), Estate Planning, and Real Estate.
Source: http://www.businessmirror.com.ph/2014-psei-leaders-and-laggards/
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