ICTSI shares rise on expansion preparations, improving sector outlook - BusinessWorld Online

ICTSI.COM By Matthew Miguel L.Castillo, Researcher SHARES of International Container Terminal Services, Inc.

(ICTSI) rose last week after the company secured a $300-million loan to support future expansion plans, while sentiment toward the services sector continued to recover, analysts said.Data from the Philippine Stock Exchange (PSE) showed ICTSI was the most actively traded stock last week, with 5.88 million shares worth P4.74 billion changing hands as of Friday.

Week on week, the stock rose by 1.3% to P815.50 on Friday from P805 the previous week, outperforming the services sector’s 0.5% gain and the benchmark Philippine Stock Exchange index’s (PSEi) 0.2% decline.Since the end of last year, ICTSI shares have climbed by 43.8% from P567 on Dec.

29, likewise surpassing the services sector’s 27.2% growth and the PSEi’s 1.5% drop. Timson Securities, Inc.Equity Analyst Juan Alfonso G.

Teodoro said in a Viber message that the $300-million loan boosted investor confidence and helped make the stock the week’s most actively traded issue.ICTSI said in a statement last Wednesday that the loan was obtained from the Asian Infrastructure Investment Bank (AIIB) and marked the company’s first non-sovereign-backed deal, or a transaction completed without government financial support.

“For many investors, this signals confidence in ICTSI’s long-term growth and its ability to handle increasing trade and cargo demand,” Mr.Teodoro said.

The loan will be used to expand the capacity and technological capabilities of the Manila International Container Terminal, South Luzon Container Terminal, and Mindanao Container Terminal.“This development reinforces the market’s confidence in ICTSI’s long-term expansion story… [and will support] aggressive expansion plans despite higher interest rates and an unfavorable macroeconomic backdrop,” Unicapital Securities, Inc.

Research Analyst Lance Rafael Y.Cai said in an ...