JG Summit Holdings, Inc. was tagged as one of the most actively traded stocks last week. This was due to investors considering the strong earnings of the company in 2019 and the demand for expanded food production during the enhanced community quarantines. According to the data shown by the Philippine Stock Exchange, there were a total of 15.85 million shares traded, which were equivalent to P866.86 million. Last Friday, the shares of the JG Summit closed at P53.80 apiece, 1.3% lower than the P54.50 from the previous work.
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The reporting of the earnings of the JG Summit for 2019 had led to its shares closing at P57 apiece last Wednesday. This was higher by 3.6% compared to the previous day. It was noted that the solid earnings had a great effect on the decisions of the investors. Not only that, the sentiments of investors were also on Universal Robina Corporation (URC), one of its subsidiary. URC has been receiving more demand for its production since the start of the quarantine and investors are expecting the company to do well in the first quarter of this year considering the incoming mass food production.
Based on the 2019 performance report of the JG Summit, its consolidated revenues were up by 3.4% to P301.82 billion because of the growth of its banking and airline units. It also noted the gains from the stake in United Industrial Corporation in Singapore. Subsequently, its attributable net income increase by 63.1% to P31.29 billion. JG Summit’s business segments are still in a good position right now but they may become vulnerable at any time considering what’s happening. Short-term shocks are still bound to happen.
The company notes that its banking and food units are the most essential segments right now as they are the only ones that remained open during the quarantine. Despite being the majority of JG Summit’s business, we still can’t overlook the fact that Cebu Air is one of the largest contributors of its net income. Right now, the performance of the airline company is affected by travel restrictions. Its only source of income is the cargo operations. While URC’s income might increase by 25%, Cebu Air might plunge by 50%. The effect of Cebu Air is still significant.