BIZ BUZZ: Ayala keeps the faith in ALI

When Ayala Corp. first started buying more Ayala Land Inc. (ALI) shares in June, it barely raised eyebrows.

Now, after five separate purchases in just a month, the pattern is becoming harder to ignore.

Since June 17, Ayala has acquired about 58.05 million ALI common shares, spending roughly P810.84 million based on disclosed transaction prices.

The buying streak culminated in July 17, when Ayala disclosed another purchase of 6.9 million shares at an average price of P16.715 each. On the same day, ALI shares jumped 5.72 percent to P17.

The steady accumulation comes as investors remain split on the property’s giant’s prospects.

First Metro Investment Corp. earlier downgraded ALI to “hold” from “buy,” arguing that the company has the weakest balance sheet among property developers under its coverage while its residential business continues to lag.

COL Financial, however, stood by its “buy” recommendation, saying the market has become overly pessimistic and that ALI’s long-term value remains intact.

While analysts continue to debate whether ALI is cheap for good reason or a compelling bargain, its parent company has allocated P5 billion, including P2 billion from its approved capital expenditure budget for investments, for the additional purchase of ALI common shares.

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For investors, perhaps the more interesting question is this: Is Ayala simply supporting its listed property arm—or does it see value that the market has yet to recognize?

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