Water firms’ woes drag market lower

The local stock barometer tumbled on Thursday as investors continued to digest the impact of the government’s decision to terminate the water concession of Manila Water Co. and Maynilad Water Services after 2022.

Metro Pacific Investments Corp. (MPIC), parent of Maynilad, slid by another 15.67 percent, while its partner DMCI, lost 1.17 percent.

MPIC was the day’s most actively traded counter, with P681.98 million worth of stocks changing hands.

Manila Water, which is not part of the main-share Philippine Stock Exchange index (PSEi), fell by 11.54 percent while its parent Ayala Corp. lost 1.52 percent.

Overall, the PSEi shed 45.34 points or 0.58 percent to close at 7,741.07. Elsewhere in the region, stock markets traded with mixed sentiment after the US Federal Reserve hinted that it would keep interest rates at current levels through 2020 given a buoyant outlook on the US economy.

The market closed ahead of a much-awaited monetary setting by the local monetary authority, the Bangko Sentral ng Pilipinas.

By counter, the most battered at the local market was the property sub-index, which lost 1.8 percent.

The holding firm, services and mining/oil counters also slipped.

Total value turnover for the day amounted to P6.26 billion.

There were 113 decliners that outnumbered 76 advancers, while 50 stocks were unchanged.

There was P387 million worth of net foreign selling for the day.