Market rebounds, PSEi gains 0.55%
Shares of companies related to Metro Manila’s beleaguered water concessionaires rebounded on Tuesday on hopes that new contracts would be drawn up soon.
Investors awaited with bated breath what the Jan. 6 announcement would be but the only pronouncement was that the government would review and scrap the provisions in the contracts that went against the law and public interest.
While the latest pronouncement did not clarify the issue, investors welcomed it as a signal that Manila Water Co. and Maynilad Water Services, at the very least, would not lose their concessions.Local stock brokerage Papa Securities said that while the much-awaited Jan. 6 announcement of President Duterte regarding the concessionaires didn’t result in any clarity, with the topic shifting to the Iran issue instead, “maybe the lack of a clear decision yesterday could signal that negotiations are gaining traction.”
Manila Water, the day’s most actively traded company, gained 12.29 percent. Its controlling stockholder, Ayala Corp., also saw a 1.91-percent gain in stock price.
Shares of Maynilad’s lead investors, Metro Pacific Investments Corp. and DMCI Holdings, both surged by over 4 percent.
Overall, the main-share Philippine Stock Exchange index (PSEi) added 42.83 points or 0.55 percent to close at 7,840.70.
Manila Water itself is not part of the PSEi, but Ayala Corp., Metro Pacific and DMCI are part of this basket.
Elsewhere in the region, stock markets were mostly buoyant as investors’ fears of the Middle East political crisis did not escalate.
The PSEi was led higher by holding firms, which added 1.33 percent.
The industrial and services counters also gained.
On the other hand, the mining/oil and property counters slipped.
Value turnover for the day amounted to P6.49 billion. Domestic investors supported the day’s rebound as foreigners were net sellers amounting to P492.56 million.
There were 94 advancers that edged out 85 decliners, while 64 stocks were unchanged.
