ABS-CBN Corp. Stocks Suspended Due to Cease and Desist Order
Trading of ABS-CBN Corporation’s shares on the Philippine Stock Exchange (PSE) has been suspended today, May 6, following the cease and desist order (CDO) issued by the National Telecommunications Commission (NTC) yesterday, May 5. ABS-CBN’s broadcasting stations signed off yesterday, 7:52 p.m., after receiving the CDO.
The trading suspension took effect at 9 a.m. today and will be lifted "one trading day after dissemination of the full disclosure to the investing public." The suspension applied to all ABS-CBN Corp. shares, as well as the Philippine Deposit Receipts issued by ABS-CBN Holdings Corp.
PSE implemented the suspension in order to protect the market and its investors, as well as to maintain fair trading.
Here’s PSE’s statement on the matter:
“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.
Pursuant to the foregoing basic principle and disclosure standard, the Exchange required the Company to submit a full disclosure on the impact of the CDO on the business, financial condition, operations, and prospects of the Company, as well as its business continuity plan, risk mitigation measures, and such other material information for the investing public.”
ABS-CBN Corp. stocks closed yesterday, May 5, at P17.50 apiece.