The improvement in the property sector is to boost sentiment towards the shares of Cityland Development Corp., which saw a drop of 9.41 percent week-on-week.
Shares of Cityland declined by 9.41 percent or 8 centavos to finish at 77 centavos apiece amid the 0.58-percent drop of the Philippine Stock Exchange Index on Friday, making it end the previous trading week as the second top loser.
Philstocks Financial Inc. research analyst Piper Chaucer Tan said Cityland’s shares have been seeing less than 100,000 value turnover, as investors are cautious about the stock on the back of liquidity constraints.
PHOTO FROM CITYLAND FACEBOOK PAGE
“I think [the] stock dividends also played a part for the stock and also the grim outlook for the residential sector, “ Tan added.
He said most of Cityland’s residential projects are situated in areas hard-hit by the coronavirus disease 2019 (Covid-19) global pandemic like Metro Manila and Bulacan and Cavite.
A recent filing to the exchange showed Cityland recorded a 39.7-percent slump in its first semester net income to P232.46 million from P385.18 million in the same period last year.
The property firm’s gross revenues in January to June likewise plunged by 44.4 percent to P696.16 million from P1.25 billion year-on-year.
Sales of its real estate properties for the first half was P320.9 million, down 62.34 percent from P852.2 million in 2019 on the back of lower sales of 101 Xavierville, Pines Peak Tower II, Grand Central Residences, One Taft Residences and North Residences.
“Sales of Grand Central Residences and Pines Peak Tower II decreased since majority of the units were already sold last year. In addition, the quarantine measures since mid-March 2020 significantly affected the group’s sales for the first semester of 2020,” the company said.
Meanwhile, Tan sees Cityland’s shares moving sideways this week given liquidity limitation of the stock and price discovery.
“We expect [a] sideways movement for the stock unless there is a M&A (mergers and acquisitions) or a JV (joint venture) for the company with a huge real estate player,” he said.
Tan added that improving the property sector would also boost investors’ sentiment towards the stock.
He explained the upswing of the real estate industry would be aided by containment of Covid-19, and a concrete plan from the government for economic recovery and the safety of the people.
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Article and Photo originally posted by The Manila Times last September 21, 2020 and written by Faye Almazan.
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