Real estate resilience and market moves
Here’s a recap of last week’s (ending May 16) market activity from First Metro Securities.
Property news
One-time gains. Alliance Global Group Inc. (AGI) reported a 66 percent surge in first quarter net income to P11 billion driven by one-time gains. It also reported a 14 percent rise in normalized earnings to P7.5 billion in the same period, reflecting strong performance in real estate, tourism, and office leasing amid global challenges.
Strong operations. GT Capital Holdings Inc. (GTCAP) posted a 27 percent rise in core net income to P8.7 billion in Q1 2025, driven by strong banking, automotive, and real estate operations. Consolidated net income grew 29 percent to P9.14 billion including non-core gains.
Property firm’s first profit. Megawide Construction Corp. (MWIDE) similarly posted a 14 percent rise in its first quarter net income to P209 million. This was driven by the first ever profit from its real estate arm PH1 World Developers, despite a drop in consolidated revenues. Strong margins from winding-down construction projects and improved land port and property sales supported overall performance.
Economic news
Oil prices. After two weeks of rollbacks, oil prices are expected to rise this week, with gasoline projected to increase by P0.95 to P1.40 per liter, diesel by P1.50 to P2, and kerosene by P1.30 to P1.40, driven by renewed global demand, U.S.-China tariff adjustments, and U.S. sanctions on Iran-linked firms.
Construction delays. The Department of Transportation (DOTr) has terminated its contract with BF Corporation and Foresight Development and Surveying Company for the Unified Grand Central Station due to excessive construction delays. Plans are now underway to fast track the project that aims to connect Metro Manila’s LRT-1, MRT-3, and MRT-7 lines after 16 years of setbacks.
Lower power bills. Consumers can expect lower electricity bills in May as the National Grid Corp. of the Philippines (NGCP) announced a 28.45 percent drop in transmission rates, bringing the average charge down to P1.0904 per kilowatt-hour from P1.524 in April.
Market wrap
Philippine Stock Exchange index (PSEi): 6,465.53 (-1.33 points; -0.02 percent)
The main gauge closed marginally lower, slipping -1.33 points (-0.02 percent) to settle at 6,465.53, as the market drifted in a tight range in the absence of fresh catalysts. The index struggled for direction throughout the choppy session despite a strong showing from select large caps.
