PhilWeb voluntarily halts trading of shares
GAMING TECHNOLOGY provider PhilWeb Corp. went on voluntary trading suspension on the Philippine Stock Exchange ( PSE) starting Monday, after its shares nosedived on President Rodrigo R. Duterte’s pronouncement against online gambling.
“In view of unverified material information affecting the business of PhilWeb that will materially affect the investing public, we hereby request for a trading suspension in PhilWeb shares from July 4 to July 6,” the Company’s Corporate Information officer Raymund S. Aquino told the local bourse in a letter dated July 3.
PhilWeb did not specify what “unverified material information” prompted its request for a trading suspension. Calls and electronic mails to the company went unanswered as of press time.
The suspension, however, came after shares in PhilWeb tumbled by P5.40 or 22.13% to P19 apiece on Friday. Investors dumped shares worth P1.9 million more than what they bought during the session.
Analysts have attributed the sharp decline of PhilWeb’s share price to Mr. Duterte’s directive to the Philippine Amusement and Gaming Corporation (Pagcor) to revoke the licenses issued to online gaming operators in the country.
PhilWeb holds a license from the Pagcor to launch Internet cafes dedicated to casino games known as e- Games stations. As of 2014, the country has 305 e- Games stations nationwide.
Other gaming stocks, including the casino operators, also dropped on Friday albeit by single digits.
Leisure & Resorts World Corp., which conducts Internet gaming enterprises and offers relevant facilities, continued its descent on Monday. The stock lost another 64 centavos or 8.89% to close at P6.56.
Pacific Online Systems Corp., which operates online lottery betting stations, also remained in the negative territory after shedding 6 centavos or 0.5% to P11.94.
Casino operators, on the other hand, returned in the green. Bloomberry Resorts Corp. rose by 5 centavos or 0.76% to P6.60, while Travellers International Hotel Group, Inc. advanced by 6 centavos or 1.80% to P3.40. —