PhilWeb shares surge 50% on Duterte's statement

Following President Rodrigo Duterte's pronouncement that he is willing to restore online gambling if proper taxes are paid, shares of embattled PhilWeb Corp. surged by 50 percent, the daily limit allowed on the Philippine Stock Exchange.

PhilWeb shares reached P8.10 apiece at the closing bell, up P2.70 or 50 percent from P5.40 on Wednesday.

"The share price of PhilWeb surged because investors and traders are speculating that the administration has softened its stance on online gambling," Luis Limlingan, business development head at Regina Capital Development Corp., told GMA News Online.

Duterte, on Wednesday, said he will allow a resumption of online gambling provided that right taxes are paid and gaming establishment are far from schools and churches.

"Umakyat yung PhilWeb because of the seemingly change-of-heart of government regarding online gaming," Astro Del Castillo, managing director at First Grade Finance Inc., said in a separate phone interview.

In August, the Philippine Amusement and Gaming Corp. did not renew its license agreement with PhilWeb for e-Games outlets, a network of internet cafes with online casino software.

Though, PhilWeb saw its share price increase dramatically, it is still down 65 percent from its traded price on December 29, the last trading day of 2015.

Since June 30, when the President vowed to stop the proliferation of online gambling, PhilWeb shares plunged by P16.60 or 66.8 percent from P24.40 apiece. — VDS, GMA News