Shares of embattled media giant ABS-CBN sharply fell 30% after the local bourse operator lifted its trading suspension.
Trading of ABS-CBN shares resumed on Thursday, July 23, after it reported to the Philippine Stock Exchange (PSE) its business plans and financial position amid the shutdown. The trading suspension had been implemented July 13.
With the drop in share price to just P10.36 apiece, the network lost P3.8 billion in market capitalization. (READ: ANALYSIS: How ABS-CBN's exit will hurt PH economy)
The value of the network is now at just over P8.9 billion.
This value is far from its worth in 2016 or before President Rodrigo Duterte rose to power. Four years ago, ABS-CBN shares were trading at around P60 apiece, resulting in a market cap of around P51.7 billion.
Market capitalization reflects the company’s worth in the open market, as well as how the market perceives a company’s future. It also reflects how much investors are willing to pay for its stock.
The Kapamilya network said it is now shifting resources toward its digital and cable businesses after Congress denied it a franchise.
It also told the PSE it is reducing its "non-core" activities, after a massive drop in revenues.
ABS-CBN assured creditors it would pay its obligations.
The PSE index closed at 6,029 on Thursday, down by 0.5%. – Rappler.com