New water deal helps douse pandemic’s toll on stock market

The local stock barometer gained on Monday while investors welcomed the signing of a much-awaited new water concession agreement for Metro Manila, an issue that had stressed the market before the pandemic.

The main-share Philippine Stock Exchange index (PSEi) added 52.06 points, or 0.81 percent, to close at 6,495.15 on thin trade.

“The PSEi climbed higher on lower trading volumes as investors held on to positions and gave the market the benefit of the doubt. Most were expecting some panic-selling and were bearish going into the new trading week,” said Christopher Mangun, head of research at AAA Equities.

“Trading volumes declined further, a sign that most investors are on the sideline due to the cautious sentiment. The government’s intent to allow the private sector to purchase and administer vaccines with minimal limitations as well as the release of P23 billion worth of financial assistance to those under tighter restrictions may have improved the sentiment. We may still see the main index test support in the coming days,” he added.

The industrial and holding firm counters both added over 1 percent, while the services and mining/oil counters rose by less than 1 percent. The property counter slipped by 0.29 percent.

Value turnover amounted to P5.36 billion. Domestic hands kept the market afloat as there was net foreign selling worth P808.81 million.

There were 117 advancers that edged out 85 decliners, while 48 stocks were unchanged.

The PSEi was boosted by the gains of PLDT and Metro Pacific, which both rose by 4.01 percent. This was after the government finalized the much-awaited agreement renewing Metro Manila’s water concession through July 1, 2037.

The new concession adopts the same framework used in the New Clark City water concession, which is acceptable to the Metro Pacific group. The latter controls Maynilad Water Services.

Ayala Corp. likewise gained 1.35 percent, while its water concession arm Manila Water (non-PSEi) added 0.12 percent. INQ