MANILA (UPDATE) – Shares of PhilWeb continued to plunge on Monday, days after President Rodrigo Duterte singled out its chairman Roberto Ongpin as an oligarch that must be “destroyed.”
PhilWeb shares plunged another 33 percent in morning trade. Its shares dropped 37 percent on Thursday.
Luis Limlingan, head of research at Regina Capital, advised investors to stay on the sidelines for now and wait for more clarity from the President.
“It seems Mr. Duterte is against online gaming as a whole. So stay away, given the fact that PhilWeb has fallen sharply, there’s still room to still bottom at this point, so wait and observe…This stock is going to be driven by news, at this point, rather than performance of the company,” he told ANC’s “Market Edge with Cathy Yang.”
PhilWeb earlier said Ongpin resigned to “save the company.” It added that e-Games is not online gaming.
It said access to these clubs is strictly controlled. It also warned that closing down the business will affect 5,000 employees, and deprive the government of over P2 billion in revenues for Philippine Amusement and Gaming Corporation (PAGCOR).
PhilWeb shares are little traded, non-index issues. It is trading at a 20-month low.
In his first Cabinet meeting in June, Duterte asked PAGCOR to stop issuing licenses to online gaming firms.
PhilWeb said it has requested PAGCOR chairperson Andrea Domingo for a meeting to clarify the situation.
PhilWeb president Dennis Valdes said the company wishes to explain its side, noting that President Duterte “may have been misinformed.”
“As a publicly listed company on the Philippine Stock Exchange, our records are fully open to public scrutiny and are available for a full investigation at any time,” Valdes said in a statement.