Philippines' DITO, Chelsea shares slide after report of possible sale
MANILA : Shares in two Philippine firms owned by tycoon Dennis Uy, a close associate of outgoing President Rodrigo Duterte, tumbled in early trading on Friday, after Reuters reported a potential sale of the companies.
DITO CME, owner of the country's third-biggesttelecoms operator, and Chelsea Logistics lost as much as 7 per cent and 3.8 per cent, respectively, while the broader stock index slipped 0.4 per cent as of midday break.
"Investors are speculating on what's happening given the lack of information on the planned sale," said Astro del Castillo, managing director at First Grade Finance in Manila.
"With the air of uncertainty, and the global and local markets in flux, investors opted to stay safe," added Castillo.
Uy, whose business empire expanded rapidly under Duterte's term, is considering selling businesses collectively worth several billion dollars, Reuters reported on Tuesday, citing sources familiar with the matter.
It was not immediately clear why Uy, the top campaign contributor of Duterte in his 2016 presidential run, would be putting the assets up for sale. His representatives did not respond to requests for comment.
Buyers are looking at the prospects of Uy's businesses, including a South China Sea gas field and a commercial land lease firm at the site of a former U.S. military base, the sources said.
Not all of Uy's companies lost ground, with shares in oil retailer Phoenix Petroleum trading up 0.4 per cent, while casino-resort developer PH Resorts Group rallied 8 per cent, two days after announcing a capital infusion from a Filipino billionaire.
