Best Stocks to Buy – MacroAsia shares make 14.7% gain
The shares of Lucio Tan’s MacroAsia Corp. finished among the top gainers in the previous trading week and recorded a double-digit week-on-week growth.
MacroAsia soared by 6.25 percent or 33 centavos to close at P5.61 apiece on Friday, enabling the stock to surge by 14.7-percent week-on-week. The listed firm also reached its 30-day high of P5.66 on Friday.
AAA Equities head of research Christopher Mangunsaid MacroAsia is “one of the most battered issues” due to its deep involvement in the still struggling airline business heavily hit by the global pandemic caused by the coronavirus disease 2019 (Covid-19).
He noted that the recent easing of restrictions on leisure travel in the National Capital Region (NCR) Plus until June 15 might have “excited some investors.” NCR also covers the provinces of Bulacan, Rizal, Quezon and Laguna.
“Optimism on the economy’s continued recovery has generated some optimism for stocks in this industry,” Mangun explained in a text message.
The Inter-Agency Task Force for the Management of Emerging Infectious Diseases has allowed point-to-point travel from the NCR Plus to areas under the most lenient modified general community quarantine from June 1 to June 15.
The Department of Tourism said those aged below 18 and above 65 years old are permitted to travel for leisure provided they undergo RT-PCR testing before travel.
The department added that the same requirement applies to travelers between 18 to 65 years old, should the concerned local government units require it.
Meanwhile, Mangun sees a pullback for MacroAsia for the week as it is currently up by 28 percent in the last three weeks despite reporting a net loss in the first three months of the year.
“Developments from its mining subsidiary, its plans on whether to join the bid again for the Sangley International Airport, as well as the government’s plans on leisure travel and mobility restrictions will affect the sentiment on this stock,” Mangun noted.
In a filing to the exchange, MacroAsia said it incurred a P284.36-million loss in the first quarter as its core businesses remained impacted by the “downturn in air travel due to Covid-19-related quarantine and airport restrictions since the onset of the pandemic.”