PSE suspends trading of ABS-CBN shares following franchise bid denial

The Philippine Stock Exchange (PSE) on Monday suspended trading of the shares of ABS-CBN Corp., following the congressional denial of its franchise bid.

In an advisory, the local bourse announced the suspension of both the common shares and the Philippine Depositary Receipts (PDRs) of the broadcast network.

"The trading suspension shall be lifted one (1) trading day after dissemination of the full disclosure to the investing public," the advisory read.

ABS-CBN shares closed at P14.78 apiece last Friday, down from P14.96 per share the previous trading day.

Just last Friday, a House of Representatives panel voted to deny the network's franchise application, even as several government agencies maintained that it had no violations.

President Rodrigo Duterte had been consistent in threatening to oppose the renewal of ABS-CBN's franchise, as he earlier claimed the network did not air political advertisements during the 2016 election campaign which were already paid for.

In February, ABS-CBN president and chief executive officer Carlo Katigbak  apologized for the unaired political ads of Duterte. This was accepted by Duterte two days later, as he said he would not interfere with the franchise renewal process in Congress.

Several business groups such as the Makati Business Club had called on Congress to renew the franchise of ABS-CBN to ensure equal treatment of all businesses and effectively boost investor sentiment.

Government agencies such as the Bureau of Internal Revenue (BIR), the Securities and Exchange Commission (SEC), the Department of Justice (DOJ), have cleared ABS-CBN Corp. from violations. — RSJ, GMA News