DMCI Holdings cautiously optimistic for 2024

MANILA, Philippines —  The Consunji Group is taking a cautiously optimistic outlook for this year.

DMCI Holdings chairman and president Isidro Consunji said 2023 was a fairly good year even with global market uncertainties, volatile prices, and higher interest rates.

“We ended 2023 with all-time high coal shipments and off-grid energy sales. Our sole operating nickel mine also posted record sales during the year,” said Consunji.

The Consunji Group’s Zambales Diversified Metals Corp. shipped 1.68 million wet metric tons (WMT) of nickel ore from January to December, an increase of 16 percent from 1.45 million WMT in 2022.

Moving forward, the group expects interest rates to play a favorable role for the DMCI Group, as rates are likely to stabilize.

“Interest rates, which seem to have reached their peak, are likely to stabilize or decrease in the latter part of the year, potentially easing borrowing costs and encouraging economic activities,” Consunji said.

Lower interest rates would provide a boost to the conglomerate’s housing arm DMCI Homes as it would pave the way for more demand for housing due to lower mortgage costs.

The group’s cautiously optimistic outlook takes into consideration the combined effect of cooling inflation, stabilizing interest rates, China’s economic slowdown and modest growth in the domestic energy market.

“Slowing sales and manufacturing in China could keep a lid on commodity prices. With less demand and activity, we expect prices to be somewhat lower than last year,” Consunji said.

He is likewise optimistic on the business prospects of DM Consunji because of the government’s handling of infrastructure projects.

Improved scheduling and payment processes for these projects are expected to hasten construction activities, a development that could have ripple effects across various sectors of the economy, he said.

In the real estate sector, particularly the mid-segment, he noted signs of recovery.

“One of our projects, Solmera Coast, is doing extremely well. In less than five months, we have sold out 74 percent of our launched units,” he said.