What a good news it is for the Metro Pacific Investment Corporation (MPIC) investors! The stock of this known firm was one of the most actively traded stocks last week. Its shares closed at P4.91 on Friday and although it decreased by 1.2% primarily because it is now at the resistance it was still up 7.7% if we take a look at it on a week-on-week basis. We’re just on the last month of the first quarter of the year yet the firm has 6.7% increase on stock price for the year already. So, what triggered the jump on the firm’s price of stock?
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The data from Philippine Stock Exchange showed that the 8th most traded stock from March 4 to March 8 belonged to MPIC. The total traded amount was worth P881.31 million or equivalent to 179.48 million shares. The company has better than expected earnings brought about by its toll road business
NLEX Corporation has verified that the Toll Regulatory Board gave its go signal to increase the toll fees by P10 in its open system, which include the vehicles going to Valenzuela City, Caloocan City, Quezon City, Malabon, Marilao, and Meycauayan. NLEX also disclosed that they will start to collect additional P0.18 per kilometer in its closed system or those vehicles which will be charged by the distance traveled. The increase in toll fees will be effective on March 20. The increase in toll fees to be effected next week has made a positive outcome for the company.
MPI has the plan to increase its subsidiary’s capital to P20 billion by late this year or by 2020. The subsidiary they are talking about here is the Metro Pacific Hospital Holdings, Inc. (MPHHI), MPIC’s hospital unit. The raise in the capital would allow the firm to build a total of 30-40 hospitals across the country in the near future. The parent company is still assessing whether to go for an initial public offering or private placement to protect the money for the capital raise. As of today, MPHHI has 14 hospitals.
Looking at the chart below, MPI is currently sideways with a support at 4.25 and a resistance at 5. As MPI has a hard time at 5, we may expect the stock retrace again lower. Should MPI successfully breakout from 5 and stay above 5, the next target price of the company will be at 5.6.