PSE to delist 10 delinquent companies

The Philippine Stock Exchange is considering delisting 10 delinquent companies, whose shares remain suspended from trading, to make sure that only qualified stocks are listed on the local bourse.

The PSE listing committee is currently reviewing the compliance of 10 corporations with the exchange’s continuing listing obligations to determine whether they could be removed from the PSE roster of traded stocks.

These corporations include sugar miller Victorias Milling Co., Inc., Philippine National Construction Corp., Wellex Industries, Lodestar Mining Corp., and Reynolds, among others.

The move is part of efforts to ensure the quality of companies listed in the exchange and to provide additional protection to investors.

The PSE has informed the Securities and Exchange Commission about its plan.

Trading of shares of these companies had been suspended due to varying reasons, among which include the failure to submit reportorial reports on time despite repeated demands, the filing of bankruptcy, and non-operation for two years.

Any security may be suspended from being traded at any time, after due notice when the exchange determines the issuer has failed to comply with the PSE’s listing rules despite notice and after the lapse of the prescribed period.

A listed firm may be removed from the list if it shall be rendered incapable of continuing the business or when its assets have been ordered liquidated by any competent authority.

Other conditions considered for listing are the following:

• the listed company willfully makes a false statement in the financial statements;

• the listed firm repeatedly fails to make timely, adequate and accurate disclosures of information or fails to submit any reportorial requirements to the exchange and its shareholders.