LISTED television networks gained attention at the bourse yesterday with shares of GMA Network Inc. closing P1.13 higher to P5.90 apiece while trading of ABS-CBN Corp. as suspended after the National Telecommunication Commission (NTC) ordered its closure on Tuesday.
Investors took to the biggest rival of ABS-CBN at yesterday’s trading as they positioned for windfall following the closure of its nearest rival.
The Philippine Stock Exchange (PSE) has ordered the suspension of trade in ABS-CBN’s shares of stock.
“Under the PSE Disclosure Rules, the exchange is mandated to ensure the investing public has access to full, fair, timely and accurate information where such information may reasonably be expected to materially affect the market activity and the price of securities. Pursuant to the foregoing basic principle and disclosure standard, the exchange required the company to submit a full disclosure on the impact of the CDO (cease and desist order) on the business, financial condition, operations, and prospects of the company, as well as its business continuity plan, risk mitigation measures, and such other material information for the investing public,” the PSE said.
“In view of the foregoing CDO issued by the NTC that prohibits the company (ABS-CBN) from continuing its broadcast operations, and pursuant to existing rules, applicable laws and regulations in order to maintain a fair, efficient and orderly trading market, the Exchange will implement a trading suspension on ABS’ shares and the Philippine Deposit Receipts issued by ABS-CBN Holdings Corporation (ABSP) effective at 9 a.m. today, May 6, 2020,” it added.
Trading for ABS-CBN’s shares will resume today, Thursday.
The NTC ordered the closure of ABS-CBN after its legislative franchise to operate a free-to-air TV and radio broadcasting operation expired on Monday, May 4, 2020, after 25 years of effectivity.
