PSE works on immediate lifting of Meralco shares suspension

The Philippine Stock Exchange (PSE) reassured the public yesterday that it is working closely with the Philippine Depository and Trust Corp. (PDTC) and Securities Clearing Corp. of the Philippines towards the immediate lifting of the trading suspension on the shares of Manila Electric Co. (Meralco).

“We want to assure the investing public that the trading suspension of all Meralco shares ultimately protects their interest,” said PSE president Francis Lim.

He said all three institutions have written Meralco “with the end in view that none of the untraded Meralco shares under dispute shall be sold in the stock market pending final resolution of the contending claims relating to the shares.”

Lim stressed that the trading suspension was nothing political and merely intended to protect the integrity of stock market transactions.

He said the PSE board’s decision to halt the trading of Meralco shares required prudent deliberation and action consistent with their mandate to maintain an efficient and orderly market.

Since the imposition of the trading suspension on Dec. 17, 2008, the PSE, together with the PDTC and its 132 operating brokers, have buckled down to work and has undertaken measures to effectively isolate and segregate the disputed shares from the rest of the Meralco shares to maintain the purity of stock market transactions.

“This is not a simple process. We can liken the situation to oil poured into a glass of clear drinking water. The drops of oil contaminate the whole glass of water. Just as it is recklessly imprudent for a restaurant owner to serve the contaminated water to its customers, it would be disastrous for us to resume trading without first ensuring that Meralco shares are cleansed of any impurities caused by the dispute. This is particularly crucial since the Meralco shares under dispute is material because it constitutes 15 percent of the public float of Meralco,” Lim explained.

The PSE official further said they should not be held liable for Meralco’s alleged “grave, irreparable and material damages and losses”, when the trading suspension was merely to protect the interest of investors.