Media Stocks Drop, While Araneta Companies Grow in Value
With unofficial election tallies pointing to a Ferdinand Marcos Jr. presidency, the stock value of many media companies takes a nosedive, while Araneta stocks shoot up.
Following news on the partial, unofficial election tallies that point to a possible Ferdinand “Bongbong” Marcos Jr. presidency, Philippine investors are greeted with mostly bad news as trading on the local bourse resumed on Tuesday, May 10.
For one thing, all indices succumbed to the bloodbath. The benchmark Philippine Stock Exchange index (PSEi) slipped by as much as 3.1% to the 6,500th level before closing 0.58% lower.
Media Stock and its Ups and Downs
In all this, media companies were the ones that were mainly affected. For example, the share price of Manila Broadcasting Company, which operates DZRH and 5 other radio stations, dropped by over 22%.
On the other hand, media giant ABS-CBN—whose franchise renewal bid was rejected by the Duterte administration—took a nosedive by 22.6%. Moreover, ABS-CBN Holdings, the company that issues Philippine Depositary Receipts (PDRs)—investment instruments that accrue interest and can be sold for profit—slid by 21.2%.
As for its rival, GMA Network, its stock value dropped by as much as 18.7%, while GMA Holdings, the holding company of the network (which also issues PDRs), fell by as low as 17.8%.
However, not all media stocks suffered. Prime Media Holdings—a Philippine-based holding company with no active operations—soared almost to the ceiling at 43.7%. According to reports, it’s poised to be the backdoor vehicle of Prime Collective Media Corporation, a company founded by House Majority Leader Martin Romualdez.
Araneta Stocks, Soaring in Value
Among the many companies that saw decreasing stock values, the stocks of many Araneta-owned companies shot up in value. For example, Philippine internet company PhilWeb Corporation—owned by Gregorio “Greggy” Araneta III—saw its stock price increase by as much as 43.5%. Likewise, Araneta Properties, which is also owned by Araneta, had a 36.9% jump.
All these stock price movements also came as Asian stocks tumbled. With global investors being concerned about factors like stagflation—sluggish economic growth combined with higher inflation and rising interest rates—the outcome of stock values is shaky at best.