Business

ABS-CBN shares resume trading and fall 7%

Shares of media conglomerate ABS-CBN Corp. have fallen as much as 16.7% upon resumption of trade Monday, reflecting investors’ unease about the future of the Lopez-led network.

The stock declined to as much as P15 before closing at P16.24 or 7.2% lower than its close on May 5.

The PSE suspended trading of common shares and depositary receipts of ABS-CBN on May 6 after the country’s leading TV station was forced to go off air following the shutdown order by the National Telecommunications Commission.

Trading suspension was lifted after ABS-CBN complied with the disclosure requirements of the exchange, which included the impact of NTC’s closure order on its business, financial condition, operations and prospects as well as its business continuity plan.

“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.

House Speaker Alan Peter Cayetano said tackling ABS-CBN’s franchise renewal application does not mean an automatic approval.

Cayetano said ABS-CBN must respond to allegations it violated constitutional restrictions and terms of its legislative franchise.

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