After the Network’s previously-held frequencies got reassigned by the National Telecommunications Commission (NTC) to other broadcast companies, the share price of ABS-CBN Corporation stocks took a dip.
While it did not surprise many, the news about NTC’s re-assignment of ABS-CBN’s previously-used frequencies did inflict damage, albeit expected to be temporary, on the company’s stocks. After closing at PhP14.20 per share, the day earlier, ABS-CBN Corp. posted a sharp drop, as it closed the day with PhP12.76 stock price apiece. That figure crushed the company’s week-long streak of increasing share price, posting a 10.14% plunge from yesterday’s closing.
The downward trend came on the heels of the confirmation of certain broadcast companies, that they have been indeed entrusted, by the very same regulating body that forced ABS-CBN to shutdown, to use the media giant’s former frequencies, to carry their free television broadcast. These recipients include the Manny Villar-linked Advanced Media Broadcasting System Inc., with whom NTC entrusted the iconic analog Channel 2 (DWWX-TV), which previously carried ABS-CBN’s flagship channel, as well as its complimentary UHF channel, Channel 16, to carry their digital transmission.
Channel 23 (DWAC-TV), on the other hand, was granted to Aliw Broadcasting Company, which owned the radio stations, DWIZ, and Home Radio. Channel 23 last carried ABS-CBN’s flagship sports channel, S+A, and the iconic defunct channel, Studio 23.
Pastor Quiboloy’s Sonshine Media Network International (SMNI), meanwhile, was entrusted with the Channel 43 frequency, which previously belonged to AMCARA Broadcasting Corporation. Channel 43 carried ABS-CBN’s digital channels on TVPlus.
AMCARA had its legislative franchise expire in 2020.
These reassignments are seen to be largely responsible for the movement in ABS-CBN’s stock prices. Trading confidence is traditionally affected by major events happening in the company, and in ABS-CBN’s case, the news about officially losing its previously-held frequencies discourages traders to buy stocks. It can be recalled that the company’s share price posted surges when it announced its leasing deals with A2Z and TV5, proving what damages these developments in the company can do.
That said, the company is seen to swiftly bounce back, as its future remains bullish with an expanding market capitalization. Improving ratings and future investments are also expected to give the company an extra push at the stock market.
