Trader’s Playbook

May 06, 2020

AyalaLand Logistics Holdings Corp.
Bloomberg: ALLHCPM / Reuters: ALLHC.PS

BUY
ALLHC: Technical breakout La s t T ra de d Price ( 06 M a y 2020) 1.88
• AyalaLand Logistics Holdings Corp. (ALLHC) currently formed an inverse M k t. Ca p ( P bn) 12.10
head and shoulders pattern, a bullish reversal signal.
Fre e Floa t ( %) 26.62
• The bullish price action is on the back of the optimism on demand
recovery for logistics and warehousing upon gradual resumption of the
economy.
• We recommend traders to accumulate the stock at current prices. Set cut
loss below P1.70. ALLHC vs. PSEi year on year performance
What Happened: 60.0%
AyalaLand Logistics Holdings Corp. (ALLHC) closed 8.9% d-o-d higher last
Thursday (30 Apr 2020) on optimism due to the opening of some business sectors 40.0%

on areas under General Community Quarantine (GCQ). ALLHC’s recent bullish 20.0%
price action comes after the formation of an inverse head and shoulders (or H&S
0.0%
bottom) pattern in its daily chart (see technical corner in page two), suggesting an
intermediate-term bullish reversal pattern. -20.0%

-40.0%
Our View:
ALLHC PSEi -60.0%
The H&S bottom indicates that ALLHC has reached the end of accumulation
6/2/2018
7/2/2018
8/2/2018

1/2/2019
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1/2/2020
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3/2/2019

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10/2/2019
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12/2/2019
period at the bottom of a major downtrend. The breakout above its
neckline of P1.60 last 17 Apr 2020 signals a reversal and a start of a new
uptrend. According to Recognia, our automated chart pattern recognition Equity Research Analyst
program, the measured price target after ALLHC broke out of its H&S bottom Royce Aguilar
pattern is from P2.20-P2.30. +63 (2) 8859-0600

In terms of fundamentals, as the local economy starts to re-open, several factors

will drive the demand for industrial properties. First, the recent surge in demand
for consumer goods and e-commerce will increase the need for logistics and
warehousing. Second, the resumption of public construction will hasten the
development outside Metro Manila and will create demand for logistics and
warehousing.

Recommendation:
We recommend traders to accumulate the stock at current prices. More
conservative traders can buy once share price breaks above P1.98. Set cut loss
below P1.70. Take profit at around P2.20-P2.30.
 Trader’s Playbook

Technical Corner

Analysis: ALLHC currently formed an inverse head and shoulders (or H&S bottom) pattern in its
daily chart. The H&S bottom indicates that ALLHC has reached the end of a period of
accumulation at the bottom of a major downtrend. The breakout above its neckline at around the
P1.60 level signals the reversal to a new uptrend. Measured price target is around P2.20-P2.30.

Trading Plan: We recommend traders to accumulate the stock at current prices. Set cut loss below
P1.70.
 Trader’s Playbook

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each security and of each issuer that it may consider purchasing, selling, or holding.

First Metro Securities Brokerage Corp.

Research Department
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Phone: (+632) 8859-0681

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