Outlier

JFC shares decline on weak sentiment

By Matthew Miguel L. Castillo, Researcher

SHARES of Jollibee Foods Corp. (JFC) declined last week as softer investor sentiment linked to geopolitical tensions in the Middle East and recent company developments weighed on outlook, analysts said.

Data from the Philippine Stock Exchange (PSE) showed Jollibee was the fifth most actively traded stock last week, with 7.76 million shares valued at P1.01 billion changing hands as of Thursday.

The trading week was shortened, with Friday, June 12, observed as the Philippine Independence Day holiday.

Week on week, Jollibee’s stock price fell 6.1% to P128, from P136.30 previously. The decline was steeper than the industrial sector’s 1.1% drop and the PSE index’s 0.2% dip.

“Continued weaker sentiment from missed earnings and an outflow from rebalancing among other things pulled the stock [down],” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message.

In its first-quarter report released last month, Jollibee’s attributable net income fell 38.8% year on year to P1.47 billion, from P2.41 billion.

Revenue, however, increased 9.1% year on year to P72.37 billion, from P66.33 billion, for the January-to-March period.

The company was also moved to the small-cap index in the latest rebalancing by Morgan Stanley Capital International (MSCI). It was previously included in the Philippines Standard Index, with the change taking effect on June 1.

Separately, Aniceto K. Pangan, equity trader at Diversified Securities, Inc., said in a Viber message that the stock “further corrected” last week, as uncertainty surrounding developments in the Middle East weighed on investor sentiment.

Investor caution followed renewed tensions in the Strait of Hormuz, a key global shipping route, which contributed to broader market uncertainty.

The analysts noted a generally positive view on Jollibee’s disclosure last Monday, in which the company said it continues to evaluate options for a potential international listing of its overseas business.

Jollibee had earlier indicated plans to list a planned international spinoff on a US stock exchange, targeting a timeline in late 2027.

Last week, the company said it has not finalized a decision on the listing, adding that Hong Kong is being considered as an alternative, while also identifying Vietnam as a key growth market.

Mr. Pangan described the disclosure as positive, noting the company’s performance in China relative to other international markets.

Mr. Limlingan said the company’s objective of identifying the most suitable growth opportunities remains intact following the disclosure.

Both analysts said the stock’s direction this week will likely hinge on geopolitical developments before trading resumes on Monday.

Mr. Pangan said he expects Jollibee shares to remain under pressure unless a “positive agreement” is reached in the Middle East.

“[The] worsening of geopolitical conflict could weigh on sentiment going to next weeks’ session,” Mr. Limlingan said.

Over the long weekend, both sides signaled possible progress toward a peace framework, with reports indicating a potential timeline under discussion. However, uncertainty remains, particularly over unresolved issues.

For this week, Mr. Limlingan placed support at around P120 to P126, and resistance at P137 to P140.

Mr. Pangan, meanwhile, sees support at P126.40 and resistance at P138.10.