SM stocks flirt with record highs on merger news
By SIEGFRID O. ALEGADO, GMA News
SM-related stocks flirted with new records on Wednesday, after the Sy Group confirmed mulling a merger of its property businesses that could rival Ayala Land Inc.
"Share prices of the SM Group, particularly SM Prime [Holdings Inc. or SMPH] and SMDC (SM Development Corporation) hit all-time highs on early trades but dropped on profit taking," said Manny Cruz, Asiasec Equities Inc. market strategist.
The mall operator SMPH's shares rose 5 percent to P20.25 in early trades, but closed at P19.50 apiece.
SMDC stocks was also headed to record a close in the morning session, higher by 11 percent before paring gains to end just up by 0.33 percent to P8.85.
The Sy Group's holding company, SM Investments Corp., rose 0.07 percent to P1,007 apiece.
In the long term, however, analysts see a possible merger of SM arms firming up assets and earnings which will further drive its share price up.
If the merger pushes through, Cruz said the combined market capitalization of SMPH and SMDC will be "slightly above that of Ayala Land," the country's current largest developer.
PAPA Securities Corp. analyst Krizia Syquiatco said the merger will provide stability to the "cyclical trend of earnings" in the property businesses.
"SMPH will provide stable income from leasing," she said, noting that SMDC's income is heavily reliant on its realty projects.
Cruz also that listed Belle Corp., which mainly focused on entertainment and casino business, and privately-held SM Land Inc. could also provide additional stability to the possible property behemoth's earnings.
In a disclosure to the Philippine Stock Exchange, SMPH said a merger with other property units under the Sy Group is possible.
Teresa Cecilia Reyes, SMPH vice president for finance, confirmed in the disclosure that company officials are "studying" the merger of SMPH and other SM property groups.
Plans of the merger of the property units were first reported at The Philippine Daily Inquirer and Philippine Star. — BM, GMA News - See more at: http://www.gmanetwork.com/news/money/companies/295851/sm-stocks-flirt-with-record-highs-on-merger-news/story/#sthash.d0XFjfMU.dpuf
source:
http://www.gmanetwork.com/news/money/companies/295851/sm-stocks-flirt-with-record-highs-on-merger-news/story/
"Share prices of the SM Group, particularly SM Prime [Holdings Inc. or SMPH] and SMDC (SM Development Corporation) hit all-time highs on early trades but dropped on profit taking," said Manny Cruz, Asiasec Equities Inc. market strategist.
The mall operator SMPH's shares rose 5 percent to P20.25 in early trades, but closed at P19.50 apiece.
SMDC stocks was also headed to record a close in the morning session, higher by 11 percent before paring gains to end just up by 0.33 percent to P8.85.
The Sy Group's holding company, SM Investments Corp., rose 0.07 percent to P1,007 apiece.
In the long term, however, analysts see a possible merger of SM arms firming up assets and earnings which will further drive its share price up.
If the merger pushes through, Cruz said the combined market capitalization of SMPH and SMDC will be "slightly above that of Ayala Land," the country's current largest developer.
PAPA Securities Corp. analyst Krizia Syquiatco said the merger will provide stability to the "cyclical trend of earnings" in the property businesses.
"SMPH will provide stable income from leasing," she said, noting that SMDC's income is heavily reliant on its realty projects.
Cruz also that listed Belle Corp., which mainly focused on entertainment and casino business, and privately-held SM Land Inc. could also provide additional stability to the possible property behemoth's earnings.
In a disclosure to the Philippine Stock Exchange, SMPH said a merger with other property units under the Sy Group is possible.
Teresa Cecilia Reyes, SMPH vice president for finance, confirmed in the disclosure that company officials are "studying" the merger of SMPH and other SM property groups.
Plans of the merger of the property units were first reported at The Philippine Daily Inquirer and Philippine Star. — BM, GMA News - See more at: http://www.gmanetwork.com/news/money/companies/295851/sm-stocks-flirt-with-record-highs-on-merger-news/story/#sthash.d0XFjfMU.dpuf
source:
http://www.gmanetwork.com/news/money/companies/295851/sm-stocks-flirt-with-record-highs-on-merger-news/story/
