ABS-CBN Corp. shares slide as trading resumes after network shutdown

ABS-CBN Corp. shares slide as trading resumes after network shutdown

The shares of the Lopez controlled ABS-CBN Corporation is taking a beating as it shares in the stock market slid 7.2 percentafter the resumption of trading almost 2 weeks from the date it was closed down by the National Telecommunication Commission.

ABS-CBN shares ended at 16.24 apiece, down from the 17.50 closing rate when these were last traded on May 5. The Philippine Stock Exchange (PSE) imposed a trading suspension on the stock as well as ABS-CBN Holdings Corporation, the network's investor and issuer of depositary receipts, the next day following the news that the National Telecommunications Commission (NTC) issued a cease and desist order (CDO) against the Lopez conrolled TV and radio broadcasts due to an expired franchise.

(photo credit to owner)

ABS-CBN Holdings also saw its value slide by 4.67 percent to 14.70 by the closing bell. Trading of these stocks resumed 9 a.m. of Monday since being suspended on May 6.

The situation clearly sent the investors to be affected by the NTC’s order for the corporation going off the air.

"Well the fact it is down, more investors are worried about the long-term outcome of ABSCBN's franchise. Although price has in fact recovered, there are many of speculators who believe that in the end, the franchise will be granted," Luis Limlingan, managing director o stock brokerage firm Regina Capital, told CNN Philippines in an interview.

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Report from CNN Philippines

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