PSE suspends trading on ABSCBN
The Philippine Stock Exchange (PSE) suspended trading of common shares and depositary receipts of ABSCBN Corp. on Wednesday as the broadcasting giant went off the air following a shutdown order from the National Telecommunications Commission (NTC).
The trading suspension will be lifted one trading day after dissemination of the full disclosure to the investing public, the PSE said in an advisory on Wednesday.
The PSE required ABSCBN to submit a full disclosure on the impact of the cease-and-desist order (CDO) issued by the NTC on its business, financial condition, operations, and prospects, as well as its business continuity plan, risk mitigation measures, and such other material information for the investing public.
“Under the PSE disclosure rules, the exchange is mandated to ensure that 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,” the PSE said.
Following the expiration of its franchise, the NTC on Tuesday prohibited ABSCBN from continuing its broadcast operations.
Meanwhile, shares of rival media network GMA Network Inc. (GMA-7) surged by 21.59 percent at the local stock market as of 11:41 am on Wednesday as investors expected advertising spending to shift to this network following the shutdown of ABSCBN.
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