The share price of ABS-CBN Corp. has started to slowly recover from its previous slump in 2020. following renewed talks and fresh moves on its franchise renewal.
According to Japhet Tantiangco, senior research analyst of Philstocks Financial Inc, the network’s share price has already shown much progress compared to last year when it was forced to shut down its free TV broadcast.
From its lowest share price of 6.76 pesos on September 2, ABS-CBN share posted its highest on January 22 at 14.50 which is equivalent to 115% increase, although still below its May 5, 2020 price of 17.5 pesos.
“The climb is seen to be caused by ABS-CBN’s entry into other platforms for its shows,” he said.
“And then there are the renewed calls in Congress to provide ABS-CBN a franchise again,” Tantiangco said. “Bills have been filed already both in the House of Representatives and the Senate for the media company’s franchise.”
“And this has raised hopes that ABS-CBN could get back on air again,” he added.
Following its network shutdown on free TV, ABS-CBN concentrated its efforts on its digital platform, Kapamilya Online Live on Facebook and YouTube which they are currently lording. The network also ventured into cable programming with the Kapamilya channel.
But the biggest boost to the Kapamilya network’s share price was the block time agreement with Zoe Broadcasting which brought to life the A2Z Channel 11 which showcases several ABS-CBN programs.
Aside from A2Z, 2 Kapamilya shows, ASAP Natin ‘To and FPJ Da King are also currently being shown on TV5 via the block time agreement with Brighlight productions.
Tantiangco’s statement was also shared by Timson Securities, Inc trader Jervin de Celis, saying fresh moves to renew the network’s franchise by Sen. President Tito Sotto and Lipa Rep. Vilma Santos-Recto gave ABS-CBN the boost.
“While this is good news for the company, we still have to wait if the renewal will really push through and I guess this is the reason why the stock price is moving sideways for the past few days because investors are probably waiting for any development regarding ABS CBN’s franchise,” de Celis said.