Monday, January 14, 2013

Update on Foreign Ownership Rules Seems on the Positive Side

Last year, SEC drafted a ruling on limiting foreign ownership of Philippine companies to 40% of all shares, including common, preferred, preferred voting, etc. This challenged the confidence on the companies affected by the ruling and their stocks fell / under-performed.

Companies affected by the ruling are PLDT (TEL), Globe Telecoms (GLO), Manila Water (MWC), Ayala Land (ALI) and ICT.

Last Friday, Jan. 11, a positive hint on SEC ruling was disclosed. SEC received an entry of judgement or clarification from the supreme court (SC) that the 40% rule must apply only to voting share. This hint of hope was seen on the stock market last Friday where TEL gained almost 2%, other stocks affected by the SEC ruling also increased in price which helped

Many investors are happy with the development, and even if the rules are not yet finalized, we're already seeing its positive effect on the stock market. We'll probably see more gains on the aforementioned stocks when the ruling is finalized on June 2013 (Tentative)

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