The bounce good example of a healthy retracement hopefully the bullishness of AC continues taking the price beyond the previous high of 500 and hopefully test the high of 590
Ayala Corp. has approved a stock buyback program of up to P2.5 B worth of its common stock, the company said in a disclosure to the Philippine Stock Exchange. The shares to be repurchased account for 1.3 percent of the current market capitalization of the comglomerate, the country's largest. The buyback program will end upon full usage of the approved allotment or as the board of directors may direct, subject to an appropriate disclosure to securities regulators, Ayala Corp. said. The company said its current share price does not accurately reflect the firm's long-term growth prospects and therefore represents an excellent investment opportunity for both the company and its shareholders. "The buyback program aims to enhance shareholder value through the repurchase of shares whenever the stock is trading at a price discount perceived by the company not to be reflective of its corporate valuation based on the stock prices of the individual parts that make up the holding company," Ayala Corp. said. "The program, likewise, provides the opportunity to repurchase shares when these are undervalued and sends a positive signal of the company's confidence in its own shares," it added. The program will not affect any of the company's prospective and existing projects/investments, including its ongoing liabilities management program. Neither will it involve any active and widespread solicitation from stockholders. "It is a market oriented approach to benefit our shareholders and will be implemented in the open market through the trading facilities of the Philippine Stock Exchange," Ayala Corp. said. The conglomerate owns the nation's biggest property developer Ayala Land, second-ranked phone firm Globe Telecom and lender Bank of the Philippine Islands (BPI). It also has interests in water distribution, electronics, business process outsourcing and automotives. It reported a 57-percent rise in its first-half net profit to P11.5 B on the back of strong gains in its core businesses of banking, telecommunications and property development. The conglomerate has earmarked P46.7 B for its capital expenditures this year, which is higher than the P42 B spent last year. About P17.5 B of the programmed capital budget will be used to bankroll Globe Telecoms' expansion, particularly its 3G service, and possibly the launch of its mobile TV and IPTV (Internet-based protocol television). Another P16.2 B will go to property unit Ayala Land Inc., P5.6 B will be channeled to Manila Water Corp. and P4.8 B for the parent firm's capital expenditures.
