SHARES IN RAZON-LED International Container Terminal Services, Inc. (ICTSI) declined last week as trade tensions initiated by the US weakened investor sentiment, outweighing the corporate’s strong earnings and expansion developments.
Data from the Philippine Stock Exchange showed that ICTSI was the second-most actively traded stock by way of value turnover, with P2.78 billion price of seven.39 million shares changing hands from March 10 to 14.
The listed port operator’s shares closed at P381 each on Friday, inching down 1% from its March 7 close of P385. 12 months to this point, the stock also declined by 1.3%.
Analysts attributed the port operator’s decline to trade tensions initiated by the US.
Claire T. Alviar, research analyst at Philstocks Financial, Inc., said the listed port operator traded sideways because of concerns concerning the global economy, particularly the trade tensions initiated by US President Donald J. Trump, which could have impacted market sentiment.
“These trade disputes are expected to negatively impact the worldwide economy, which could, in turn, affect ICTSI’s business operations,” Ms. Alviar said in a Viber message.
Mr. Trump’s increased tariffs on all US steel and aluminum imports took effect last Wednesday, stepping up his campaign to reorder global trade in favor of america while Europe and Canada swiftly retaliated, Reuters reported.
Mr. Trump’s plans for tariffs — and their back-and-forth implementation since he took office in January — have upended industries from cars to energy and unnerved businesses and investors.
Reuters added that worries over rising costs reigniting inflation and souring consumer sentiment, which could herald a US recession, have caused stock markets to plunge.
Aniceto K. Pangan, equity trader at Diversified Securities, Inc., said the strong earnings of ICTSI, together with positive market sentiment driven by the strong earnings of listed firms within the fourth quarter of 2024, propelled ICTSI shares throughout the week and contributed to the local bourse generally.
He added that ICTSI’s capital expenditures for this 12 months also fueled the port operator’s movement last week, as they were solely for global expansion.
Last week, ICTSI saw developments, including its unit Matadi Gateway Terminal (MGT) within the Democratic Republic of the Congo, in addition to a rise in its net income in 2024.
MGT is undertaking key projects this 12 months to reinforce operational efficiency and customer support, reinforcing Matadi’s status because the country’s premier maritime hub.
One major initiative is the development of a 2.65-kilometer road connecting the Port of Matadi to the Kinkanda traffic circle via SEP (Services des Entreprises Pétrolières) Congo and Route Nationale 14 (RN 14).
Once accomplished, the improved roadway is anticipated to scale back container dwell times and streamline cargo deliveries. It is going to also help alleviate congestion within the western a part of Matadi, benefiting each the terminal and the encompassing local people.
MGT’s prospects also include expanding its storage yard to accommodate the consistently growing cargo volumes.
This expansion is crucial for maximizing storage capability and ensuring the terminal meets increasing customer demand.
Ms. Alviar noted that this can be a positive development for ICTSI, as enhancing operational efficiency and streamlining cargo deliveries should contribute positively to the corporate’s bottom line.
“The improved roadway infrastructure is probably going to scale back logistical bottlenecks, strengthening Matadi’s position as a key maritime hub and potentially driving revenue growth,” she added.
Moreover, in 2024, ICTSI’s attributable net income grew by 66.1% to $849.80 million from $511.53 million a 12 months earlier.
Meanwhile, consolidated revenues increased by 14.7% to $2.74 billion from $2.39 billion in 2023.
ICTSI Chairman and President Enrique K. Razon, Jr. said in a press release that ICTSI achieved yet one more set of fantastic results, marking the corporate’s highest net income in history at $849.80 million, together with increased revenues, which give the port operator the “financial strength and suppleness to pursue recent opportunities and put money into existing projects.”
The expansion in net income is especially attributed to its operations in Asia, which generated $1.14 billion last 12 months, 9.6% higher than the $1.04 billion in 2023.
ICTSI added that the rise in gross revenues was primarily because of volume growth with a positive container mix, tariff adjustments, higher revenues from ancillary services, and growth generally cargo activities in certain terminals.
Meanwhile, capital expenditures in 2024 reached $517.14 million. For 2025, ICTSI is allocating $580 million for capital expenditures, which shall be used for the event of Southern Luzon Gateway within the Philippines and planned expansions at ICTSI Rio in Brazil and Mindanao Container Terminal (MCT).
“With the continuing expansion of ICTSI in Matadi, plus the federal government’s concentrate on improving the flow of containers from the port through road improvement, it will contribute to ICTSI’s growth moving forward,” Mr. Pangan said in a Viber message.
He noted that ICTSI will sustain its growth trajectory with its bullish expansion given its earnings leads to 2024.
He placed immediate support at P320 per share, while immediate resistance is at P390 per share.
For Ms. Alviar, investors may consider ICTSI so long as the corporate maintains strong financial performance and continues executing its expansion plans.
“These aspects could support investor confidence and sustain long-term growth prospects,” she added.
She pegged immediate support at P370, while resistance is pegged at P400.
“Moreover, the 200-day exponential moving average is serving as a dynamic support level,” Ms. Alviar added. — Abigail Marie P. Yraola
