Phinma Corp.’s shares appeared to have appreciated on news that Phinma Energy Corp. signed a power supply agreement (PSA) with Manila Electric Co. last week.
On September 13, 2019, Phinma Energy inked a deal with Meralco to supply 200 megawatts (MW) with an all-in headline rate of P4.745 per kilowatt hour (kWh) and computed all-in levelized cost of energy of P4.8849 per kWh.
The 200-MW deal was part of the total 1,200-MW supply agreement. The rest was awarded to San Miguel Energy Corp. (330 MW) and South Premiere Power Corp. (670 MW).
Subject to Energy Regulatory Commission’s approval, the PSA is seen to take effect for 10 years beginning December 26 this year.
Regina Capital Development Corp. head of sales Luis Limlingan said Phinma Energy winning the Meralco bid had “some effects” to Phinma shares as it “still has a stake” in the former.
While Phinma shares ended flat on Friday at P9.19 a piece, its stocks have risen 0.98 percent or 9 centavos week-on-week.
The latest closing price is below its year-to-date peak of P9.5 on April 8 and higher than year-to-date low of P8.23 on July 9.
Phinma shares have grown nearly 1 percent year-to-date.
Limlingan said investors were observing the progress of the Meralco bidding process prior to the announcement.
“Investors were evaluating whether the company would bag the offer, whether the offer price was competitive, and the impact on whether they would win or not,” he said.
Limlingan sees Phinma and Phinma Energy shares to trade sideways in the coming weeks until the notice to proceed is issued.
Philstocks Financial, Inc. research associate Japhet Tantiangco shared the same sentiment, pegging the support and initial resistance level at P9 and P9.30 mark, respectively.
“The stock has been moving sideways and this can be attributed to the lack of catalyst,” he explained.
“One of the factors that is keeping its share price afloat right now is its share buy-back program,” Tantiango added. It has already bought 4.73 million shares at an average price of P9.3973.
In June this year, Phinma Corp. divested from Phinma Energy to focus on construction and education, which positively impacted market sentiment, he said.
“The divestment does open new opportunities for Phinma Corp. but it also leaves room for uncertainties. Will the expansion on education and construction be successful and will it bring more earnings?” Tantiangco quipped.
These are yet to be addressed, he said, adding that this prompted Phinma shares to trade sideways as well.