PSE listed company Megawide anti dummy case vs officials dismissal return investor appetite on the firm.

The court of CEBU on Tuesday June 28,  dismissed the criminal case filed against its officials for the alleged violation on Anti Dummy Law with regards to the construction of Mactan Cebu International Airport.

Before the announcement the stock price of MegaWide is hovering just above 3 pesos and after the announcement have upsurge by as much as 50%. Price is currently at 4.50/share as of the time of this writing.

According to its PSE Edge Disclosure yesterday;

“We received today, 27 June 2022, from the Regional Trial Court of Lapu-Lapu City, Branch 68, the Omnibus Order dated 14 June 2022 (“Omnibus Order”), DISMISSING the criminal case against the following Directors and Officers of Megawide Construction Corporation (“Megawide”), in their capacity as Directors of GMR Megawide Cebu Airport Corporation (“GMCAC”), for the alleged violation of the Anti-Dummy Law (the “Case”):

a. Mr. Manuel Louie B. Ferrer – Executive Director for Infrastructure Development and Chief Corporate Affairs and Branding Officer of Megawide;
b. Mr. Jez G. Dela Cruz – VP-Corporate Finance and Planning of Megawide;
c. Mr. Edgar B. Saavedra – Chief Executive Officer and President of Megawide; and
d. Mr. Oliver Y. Tan – Director of Megawide

(the “Megawide Respondents”.)

The dismissal of the Case arose from the Motion to Quash Information filed by the Megawide Respondents on 24 March 2022.

The market bounced for the second trading day from its 6,054 bottom last Thursday. It remains to be seen whether the current index move represent a bottom already as the market is still reeling from the recent interest rate hikes by the BSP. Moreover, very few Blue-Chip stocks are making a comeback at the moment.

Penny stocks still top most of the stock movers, PXP up by 15.38% while BBM stocks WEB (+8.20%) and ARA (+3.33%) are continuing there rally.

The index closed at 6,238.82 but it is noticeable that the market still had a net foreign selling of -389.2Million.

For the index sector service (+1.95%) and industrial index (+1.23%) led the movement while Mining (-1.33%) dropped today.

For the Blue chip index, URC (+6.51) and CNVRG (+5.84%) led the momentum while BPI (-2.84) and RLC (-2.66%) were the major losers for the day. CNVRG finally rebounded from its oversold conditions.

The US Market also had a good run last Friday’s closing with S&P500 gaining over 3%, Dow Jones Industrial index by 2.68% and Nasdaq Index by 3.34%.

Futures today in the US Markets are pointing to a positive opening as well.

Courtesy: Yahoo Finance