BIZ BUZZ: Semirara, DMCI shares bounce back

After two trading sessions that bruised their stocks, Consunji-led Semirara Mining and Power Corp. (SMPC) and parent DMCI Holdings Inc. rebounded on Thursday as clearer regulatory plans—including a possible coal expansion—helped calm investors’ nerves.

SMPC’s share prices rose by 13.53 percent to close at P25.60 each, while DMCI gained 9.41 percent to P9.30 apiece, putting them on the list of top gainers on Thursday.

The bounce came on the heels of the emergency analysts’ briefing on Tuesday that was aimed at easing investors’ fears following the government’s decision not to extend the group’s current Semirara coal operating contract.

For Peter Garnace, equity research analyst at Unicapital Securities Inc., the recovery could be “a technical bounce following the sharp sell-off…, which pushed the stock into oversold territory.”

But he also said the Department of Energy’s (DOE) announcement about a bidding for areas with identified coal reserves provided a much-needed support “to ease regulatory uncertainty.”

With three predetermined coal areas up for grabs, including those covered by SMPC’s existing coal operating contract, Garnace even noted that this could “present potential expansion opportunities” for the company.

Currently, SMPC said its eyes were set on winning the auction, while keeping its Semirara coal operations steady.

However, the group may find a strong contender in billionaire Manuel V. Pangilinan, who is priming for a similar run for his power generation business.

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