Philippines gets tough on closely held stocks

The Philippine Stock Exchange has suspended trading in seven companies that had failed to meet the minimum public ownership requirement, putting a damper on one of the best-performing markets of 2012.
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Hans Sicat, PSE chief executive
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<div style="text-align: left;"> Hans Sicat, PSE chief executive </div>

In 2012, Philippine stocks climbed more than 30%, ranking second in Asia behind Thailand. However, the local stock market has kicked off 2013 on a more pessimistic note. On January 2, the Philippine Stock Exchange suspended trading of seven listed companies, including San Miguel Brewery, as they had failed to meet the deadline for complying with the minimum public ownership level of 10%. If they remain non-compliant beyond June 30, they will be delisted from the stock exchange from July 1.

The move came after non-compliant companies had been given a grace period of about two years until December 31 last year.

Increasing the levels of public...

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