GMA Network shares sizzled in morning trading after the Philippine Stock Exchange suspended trade on shares of shuttered broadcasting giant ABSCBN Corp. on Monday.
It happened after the Congressional Legislative Franchise Committee rejected its offer for a new franchise.
At 10:40 am, GMA7 shares increased by about 15 percent to P6.95 per share. It was giving it a market capitalization of P20.27 billion.
The shares in the morning trade reached as high as P8.50 on hopes. Its share of advertising spending will likely swell now that a big rival is off the air.
In comparison, ABSCBN is at just P12.7 billion by the stock market.
As of last Friday, its shares were at P14.78 per share. Comparing to a 52-week high of P24.85 per share, the investors lost hope. After all, it will renew its franchise under this administration.
The Investment Public Will Have the Access
In suspending trading on the shares of ABSCBN, it aims to ensure that the investment public will have access to absolute, equal, timely, and reliable information.
Then, such information could reasonably influence the market operation and the price of its securities substantially.
“In compliance with the foregoing basic concept and transparency requirement, the exchange required the Company to provide a full report on the effect of the non-renewal of its statutory franchise on three parts.
First was the company’s market. Then, the financial position and the last were its activities. As well as on its potential prospects and business strategy, and on all other relevant details to the investing public,” said the exchange.
Trading on Philippine Deposit Receipts (PDRs) of ABSCBN was also suspended.
The PSE said the lifting was for one trading day of this suspension after the full disclosure had been disseminated to the investing public.
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