Bourse quizzes Meralco after penalizing SMC
CHERYL M. ARCIBAL, GMANews.TV
02/11/2009 | 02:54 PM
MANILA, Philippines - The Philippine Stock Exchange (PSE) asked the Manila Electric Co. (Meralco) to explain its shares’ price movement, two days after it fined San Miguel Corp. (SMC), one of its major stakeholders.
Meralco was asked by the PSE to explain the volume and price movement of its shares after special block sales were conducted.
Two days earlier, the PSE decided to penalize San Miguel Corp. for reportedly failing to disclose details about its stake acquisition in the electric company. Late last year, Southeast Asia’s food and beverage conglomerate paid P30 billion to own a 27 percent stake previously held by the Government Service Insurance System (GSIS).
Meralco, the Philippines’ largest electric company, was asked to “explain and/or disclose if you know of any reason that would justify the run-up in the price of your company's shares," the PSE said in a memo posted at its website.
Meralco said it had no idea of any reason for the run-up in the price of the company's shares.
“We have no immediate information as to who are the persons or entities purchasing or investing in Meralco shares, much less of the reasons therefor," the company said.
Data from the PSE showed that about P853-million worth of Meralco shares have been sold through special block sales in the past few trading sessions.
Share price of Meralco, the country's largest electricity distributor, had also been climbing since January 21 when its shares ended at P58 each.
In less than 15 trading days, Meralco shares had gone up at P75 each or about a 30-percent increase. On Tuesday, the company’s shares closed at P75.
As of early session Wednesday, Meralco shares traded 3.3333-percent higher at P77.50 a piece.
Next: San Miguel appeals to reconsider PSE fine
Meralco was asked by the PSE to explain the volume and price movement of its shares after special block sales were conducted.
Two days earlier, the PSE decided to penalize San Miguel Corp. for reportedly failing to disclose details about its stake acquisition in the electric company. Late last year, Southeast Asia’s food and beverage conglomerate paid P30 billion to own a 27 percent stake previously held by the Government Service Insurance System (GSIS).
Meralco, the Philippines’ largest electric company, was asked to “explain and/or disclose if you know of any reason that would justify the run-up in the price of your company's shares," the PSE said in a memo posted at its website.
Meralco said it had no idea of any reason for the run-up in the price of the company's shares.
“We have no immediate information as to who are the persons or entities purchasing or investing in Meralco shares, much less of the reasons therefor," the company said.
Data from the PSE showed that about P853-million worth of Meralco shares have been sold through special block sales in the past few trading sessions.
Share price of Meralco, the country's largest electricity distributor, had also been climbing since January 21 when its shares ended at P58 each.
In less than 15 trading days, Meralco shares had gone up at P75 each or about a 30-percent increase. On Tuesday, the company’s shares closed at P75.
As of early session Wednesday, Meralco shares traded 3.3333-percent higher at P77.50 a piece.
Next: San Miguel appeals to reconsider PSE fine
