MANILA, Philippines - The Philippine Stock Exchange (PSE) lifted yesterday restrictions on all trades involving shares in six companies affiliated with plastics king William Gatchalian, after nearly three years of investigation into alleged fraudulent trading activities.
In 2009, during the time of then PSE president Francis Lim, the exchange imposed settlement restrictions on the shares of Acesite Hotel, Forum Pacific, Mabuhay Vinyl, Philippine Estates, Waterfront and Wellex Industries Inc. The bourse required that on the day of the trade, the shares should be in the selling broker’s house account with the Philippine Depository and Trust Corp. before any sell order can be posted.
In a memorandum dated Jan. 19, PSE president and chief executive officer Hans B. Sicat, however, cautioned that the lifting of the trading restrictions is subject to the six firms’ and their related entities’ continuing maintenance of only one account with Westlink Global Equities Inc. for the purpose of trading listed stocks.
Westlink is the stockbrokerage house affiliated with the Gatchalian Group.
Sicat said these firms would continue to be under the PSE’s close watch in line with its mandate to maintain and preserve an efficient, fair and orderly market.
The PSE chief added that the lifting of the restrictions would be “without prejudice to any action that may hereafter be deemed necessary by the exchange in accordance with existing laws and rules in case of any violation of the PSE rules.”
Share prices of Philippine Estates, Wellex and Waterfront have been on an upward trend the past few weeks on persistent rumors of a potential investment by Ayala Land in the Gatchalian Group’s 60-hectare estate in Valenzuela City.
The Gatchalians are hoping to redevelop the property into a commercial and residential complex as they try to maximize the value of the huge estate which serves as the northern gateway to Metro Manila.