ABS-CBN shares halted from trading, GMA 7 shares surge

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MANILA – The Philippine Stock Exchange (PSE) on Monday has suspended the ABS-CBN Corp trading of shares to give time to the network to inform investors on how the denial of franchise renewal application could affect the company’s business moving forward.

The PSE said in an advisory that the local bourse have suspended the Philippine Depositary Receipts (PDRs) of the broadcast network and common shares of the network. The trading suspension will be lifted one (1) trading day after dissemination.

Meanwhile, shares of the GMA Network surged by around 15% giving it a market capitalization of P20.27 bil. The share trading went as high as 8.50php in the morning on expectations that share of advertising spending will likely baloon now that ABS-CBN’s operation has been halted.

Last Friday, the Congress voted to deny ABS-CBN’s franchise renewal application after the panel adopted Technical Working Group’s (TWG) Committee Resolution recommending not to give the network the renewal of its franchise.

ABS-CBN President and Chief Executive Carlo Katigbak said that they are deeply hurt with the legislative’s decision to deny the franchise as they believe that they have been giving services that is meaningful and valuable to the Filipino public. Katigbak said that the network is still committed to serve the public and will continue to find ways to achieve the network’s mission and hopefully reunite again in the future.

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