PSE puts 5 companies on notice of pending trading suspensions
The Philippine Stock Exchange [PSE 200.00 5.21%] [link] gave notice yesterday that 5 of the 11 companies mentioned in its original non-compliance notice were still non-compliant for failure to submit their earnings reports on time.
The PSE said that the continued non-compliance of 8990 Holdings [HOUSE 10.32 0.77%], Century Peak Holdings [CPM 2.79], Leisure & Resorts World [LR 1.32 1.54%], TKC Metals [T 0.68], and Vantage [V 0.78], “will merit the imposition of a trading suspension on their respective shares at 9:00 a.m. on June 1, 2022”.
The other companies mentioned in the original non-compliance notice have all since filed their respective quarterly or annual filings, and so will only pay the meager fine associated with such late filing, and their stocks will not be subject to a trading suspension related to this.
Philippine Business Bank [PBB 7.00] was granted exemptive relief by the SEC, and will be permitted to file at a later date without further penalty or suspension.
MB BOTTOM-LINE
While the language of the notice makes it sound like these stocks WILL be suspended at 9am tomorrow, regardless of what happens, the truth is that they could probably file their earnings reports at 8:55am tomorrow and effectively avoid suspension.
The PSE is using the threat of suspension as an incentive, not as a punishment, so if any of the companies do what the PSE is trying to encourage (file their earnings), the PSE will exclude those companies from the suspension process.
For any stocks that do end up getting suspended, the companies in question will be able to lift that suspension by simply submitting the required earnings reports.
That sounds simple in practice, but for shareholders trapped in Philippine Airlines [PAL 6.19] for over half a year, they know that all bets are off when a stock gets suspended.
This is why I feel so strongly about the PSE’s need to adjust its fine schedule to make the threat of suspension something that is shockingly exceptional in nature, not just “part of doing business” on the exchange.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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