^

Stock Commentary

Balai Ni Fruitas comes out of the oven burnt and stale

Merkado Barkada
Balai Ni Fruitas comes out of the oven burnt and stale
The real question that BALAI bagholders will be asking themselves is just how closely will BALAI follow in FRUIT’s performance footsteps?
Merkado Barkada

Balai Ni Fruitas [BALAI 0.65 7.14%] [link] started off rough but quickly recovered to be hot and fresh, jumping up over 10% in early trading.

BALAI even sustained that gain through the first two hours of trading while the rest of the market struggled to do much of anything.

At one point, BALAI traded as high as P0.83/share (+19%), but the price sagged slightly heading into the fat-cat lunch break at P0.77/share. After lunch, though, is when BALAI really lost its way.

Some really heavy selling around 1:45 PM pushed the price down below IPO offer to P0.67/share, and while the stock briefly recovered back to even, it faded in the final half-hour of trading to finish at P0.65/share, down over 7% from its IPO price.

Total volume was over 229 million shares, which was just a little over 55% of BALAI’s entire public float.
 

MB BOTTOM-LINE

Like father, like son? For anyone that watched the Fruitas [FRUIT 1.08 0.93%] IPO back in late 2019, BALAI’s performance looked quite familiar.

Not an exact replica -- FRUIT finished its first day with a minimal gain after a really strong start -- but definitely, a similar pattern that echoed FRUIT’s high volume, initial success, and difficulty sustaining that success into the close.

The real question that BALAI bagholders will be asking themselves is just how closely will BALAI follow in FRUIT’s performance footsteps?

FRUIT IPO’d at P1.68/share, and promptly face-planted to P1.07/share within a month of trading, which is a 36% loss.

While FRUIT has twice recovered to near-IPO offer prices, it’s always returned to this P1.10/share range, which is around where the stock touched during the March 2020 COVID crash.

FRUIT’s basically there right now, right back at a price level equivalent to where we were at the height of the COVID panic that was most detrimental to businesses like FRUIT.

Today is going to be pretty crucial for BALAI bagholders from a psychological perspective; if they see their stability fund agent fighting hard to keep the price supported, and are able to wait out the initial selling pressure today and over the next few days, then maybe the stock has a chance to test the resistance levels that would have been established by all the sales in the P0.80/share range.

But a stabilization fund can only do so much to fight the will of the market. There’s going to be a lot of nervous mashing of the F5 button today in the early minutes of the session.

--

 

Merkado Barkada is a free daily newsletter on the PSE, investing and business in the Philippines. You can subscribe to the newsletter or follow on Twitter to receive the full daily updates.
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.

BALAI NI FRUITAS INC.

FRUITAS HOLDINGS INC.

IPO

PHILIPPINE STOCK EXCHANGE

Philstar
  • Latest
Latest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

FORGOT PASSWORD?
SIGN IN
or sign in with