PLDT, Inc. shares fell 1.3% week on week to P1,284 each on Friday, as investors priced in expectations about an organization plan to spice up its customer base by distributing free subscriber identity module (SIM) cards within the countryside.
The stock fall was according to the Philippine Stock Exchange Index’s (PSEi) 1.3% decline to six,147.44 points on March 28 from every week earlier. The share has declined 0.8% this yr.
The PLDT stock was the 13th most traded share on the stock exchange last week, with value turnover hitting P485.7 million covering 376,450 stocks.
The corporate last week said it would supply through its mobile arm Smart Communications, Inc. half-a-million free SIM cards to distant areas within the Philippines in support of a government initiative to spice up mobile connectivity.
“PLDT’s initiative on SIM cards one way or the other brought optimism about a rise in its users, which offset the troubles regarding industry competition,” Jeconiah S. Nicolas, a research analyst at First Resources Management and Securities, said in a Viber message.
“However the announcement by Converge ICT Solutions, Inc. of their partnership with Elon Musk’s Starlink has raised concerns about tightening competition within the telecommunication industry,” he added.
Converge said it estimates a 5% to 10% increase in enterprise revenue through its collaboration with Elon Musk’s Starlink. On Tuesday, the listed fiber-optic network operator announced its tie-up with Starlink to increase broadband access to distant areas, strengthening enterprise connectivity nationwide.
PLDT’s net income increased 21.4% to P32.3 billion in 2024 from a yr earlier, while revenue rose 2.8% to P216.83 billion.
“For the first-quarter revenue, we expect PLDT to post P61.07 billion, and for the entire yr, we expect it to record P227.9 billion,” Mr. Nicolas said.
He put the support level for the PLDT stock at P1,255 and resistance at P1,400.
Hastings Holdings, Inc., a unit of PLDT Useful Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — LOP
