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Stock Commentary

ATN Holdings doesn’t know why the stock went up 48% in one day

Merkado Barkada
ATN Holdings doesnât know why the stock went up 48% in one day
Is the run-up just speculative based on some reclamation news, or just traders hoping to spark a sequel to last year’s Jan/Feb frenzy in peso stocks?
Merkado Barkada

In a disclosure response to the PSE, where the exchange sought ATNB’s feedback on potential reasons for its stock to have gone up nearly 50% in a single day, ATN Holdings [ATNB 0.74 48.00%] responded with the brief version of the classic response: “[we are] not aware of any positive material information which may affect the increase the value and trading in securities of ATNB, contributing to the unusual price movement of its shares.”

That’s a slight variation on a completely normal response to that kind of exchange inquiry. Truth is, though, that the stock is up over 89% in the past three days of trading, from a starting point of P0.39/share from Friday’s closing price.

The first day of that movement, from P0.39 to P0.50/share (28% increase) was on pretty light volume; only 1.1 million shares were traded for a total value of around half a million pesos.

The second day, the stock held its ground and retained the gains, on somewhat lighter volume.

The third day, though, the stock exploded for a 48% gain on 27.8 million shares of volume and nearly P20 million in traded value.

MB BOTTOM-LINE

So the stock almost doubles in two days on volume that the stock hasn’t seen in over 3.5 years. The last time it saw this kind of volume, it was trading at around P1.40 to P1.60 share on news that it might have contracts to supply Manila Bay reclamation projects with rocks from its quarries.

It’s true that President Duterte halted Manila Bay reclamation projects in 2019, and that he recently allowed certain projects to resume development in 2021, but I haven’t heard how ATN might be involved in any of this.

Is the run-up just speculative based on some reclamation news, or just traders hoping to spark a sequel to last year’s Jan/Feb frenzy in peso stocks?  

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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.

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