CEBU PARENT BUYS STOCK IN AIRLINE TO HALT SLUMP IN SHARE PRICE

Dino D'Amore
By Dino D'Amore December 20, 2010 14:42

CEBU PARENT BUYS STOCK IN AIRLINE TO HALT SLUMP IN SHARE PRICE

JG Summit, the parent of Cebu Pacific, is reported to have bought 300,000 shares of its airline unit last week following its share price dropped by 25%.

“This is a reflection of our confidence in the business model and the potential of the Philippine aviation industry,” said Lance Gokongwei, president of JG Summit president. He also added that the price of the Cebu Pacific share was now “severely undervalued” from its October 26 listing price of P125.

JG Summit bought 40,000 shares at P105 a share and 260,000 shares at P106 each.

Speculation is rife about what caused the dramatic dip in the share price on Friday; analysts mooted an erroneous sell order as a possibility.

Dino D'Amore
By Dino D'Amore December 20, 2010 14:42
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