PLDT shares rise after release of Konektado IRR

PLDT INC. stocks rose last week after the release of Konektadong Pinoy Act's implementing rules and regulations (IRR) and third quarter earnings.

- – Heather Caitlin P. Mañago

The Pangilinan-led telecommunications giant was the tenth most actively traded stock last week. A total of 957,435 shares worth P1.17 billion changed hands from Nov. 10 to 14 on the local bourse.

PLDT shares closed at P1,260 per share, up 11.5% from the previous Friday's P1,130 close, better than the services sector's 1.5% growth and the Philippine Stock Exchange index's (PSEi) 3% contraction.

Year to date, the stock dropped by 2.7%, underperforming the 12% growth in its sector and the PSEi's 14.5% decline.

Jasper Timoteo A. Ondap, equity analyst at Regina Capital Development Corp., attributed the increase to the release of the IRR of the Konektadong Pinoy Act.

Mr. Ondap added that after the Konektadong Pinoy Act lapsed into law in August, major telecommunications companies experienced a significant downturn and entered a consolidation phase, which lasted until the issuance of a clear IRR to assess its impact on their operations.

"Recently when its IRR was signed and disclosed, it gave more color on the possible effects and opportunities it would bring to the company," said Mr. Ondap in an email.

The Konektadong Pinoy Act, or the Open Access in Data Transmission Act, lapsed into law on Aug. 24, while the IRR was signed on Nov. 5.

The law streamlines the licensing process for new entrants, boosting competition in data transmission.