Prices of PLDT stocks dropped after Lacson expose
Posted on September 20th, 2009
Tradings at the Philippine Stock Exchange (PSE) are always affected by the political issues happening to our country. Recently, the share price of Philippine Long Distance Telephone Co. (PLDT) dropped significantly this week, this was because most investors dumped the stock because of the controversy over a previous deal between its parent First Pacific Co. Ltd. and businessman Alfonso Yuchengco.
On Friday, PLDT ended at the trading at P2,325 apiece, down 3.3$ from their close of P2.405 Monday, the day Sen. Panfilo Lacson revealed in his privilege speech that Yuchengco was forced into selling his stake in the telecommunications firm back in 1998. During the week, the company’s shares fell as much as 4.3% to 2,300.
In his speech, Lacson said former president Joseph Estrada harass and threaten Yuchengco, with the help of the police, to sign a conveyance of his stake in Philippine Telecommunication Investment Cop. Equivalent to over 2 million PLDT shares, in favor of Hong Kong’s First Pacific. Yuchengco confirmed Lacson’s statement.
Analyst Francisco Liboro of PCCI Securities said that investors, especially the foreign ones, were worried on the legal repercussions that the issue may bring. “This raises uncertainty levels that foreign fund managers really don’t like. So they take their profits,†he said. “Again , it’s politics. The politics in itself makes everything uncertain. We don’t know what will happen if the ownership issue is brought to the court,†Liboro added.
Jun Calaycay of Accord Capital Equities Inc. agreed on Liboro’s views, although he quickly added that the controversy would not have a sustained effect on PLDT over the long term. “It’s really a political issue. Investors are just taking a wait-and-see attitude until the issue dies down. In the long term, the basis for investing in PLDT will always be fundamentals. Regardless of ownership, PLDT will have the same market, the same products,†Calaycay noted.
Both analysts believed that PLDT may post a rebound soon after receiving heavy beating this week.
