PSE halts trading of Cyber Bay stocks

The Philippine Stock Exchange (PSE) has temporarily halted trading in Cyber Bay Development Corp. as its share price dropped toward the 40 percent floor limit, despite the company’s disclosure that it has not yet received formal notice of the Supreme Court decision nullifying its deal with the Public Estates Authority (PEA).

The biggest loser in yesterday’s trades, Cyber Bay’s shares dropped 12 centavos to 18 centavos on total volume of 10.18 million valued at nearly P2 million.

Philippine Stock Exchange president Ernest Leung said while some brokers have argued that the bourse should have suspended outright the trading of Cyber Bay to prevent the share downfall, the temporary trading halt was instead put in effect since the news information was not completely new to the market.

In fact, he said Cyber Bay’s annual report last year had cited and warned its shareholders of the uncertainty in the Supreme Court ruling, which, in effect, would significantly impact on the company’s projected revenue and income stream.

Cyber Bay, formerly Centennial City, and its wholly-owned subsidiary Central Bay Development Corp. have forged a joint venture agreement in 1995 with the PEA for the reclamation and development of a 750-hectare land area along the Manila-Cavite Coastal Road, straddling Parañaque, Las Piñas and Bacoor, Cavite, into a modern, integrated township.

Among the major stockholders of Cyber Bay are the foreign partners Italian Thai Development Co. Ltd. And Amari Holdings Inc., accounting for about 21 percent of the company’s equity.

The STAR tried to get in touch with PEA officials but was told they were in an executive committee meeting and could not be disturbed, PEA general manager Ben Cariño, on the other hand, was out of the country.