MWSS rate cut order weighs down PSEi
MANILA, Philippines - The announcement of water tariff cuts on Thursday, September 12, weighed on the Philippine Stock Exchange main index (PSEi) and the stock prices of the affected firms.
The decision of water regulator Metropolitan Waterworks and Sewerage System (MWSS) to cut the rates in the next 5 years contributed to PSEi's swing into the negative territory.
The main index shed 19.29 points or 0.31% to close at 6,195.61. This ended a 4-day rally.
Manila Water, the east zone concessionaire, closed at P31, down 3.58% or P1.25 less than the previous day's last trade.
Manila Water's parent, Ayala Corp, was down 1.92% to P563.
The listed companies behind Maynilad, the west zone concessionaire, were also down.
Metro Pacific Investments Corporation (MPIC) owns 52.8% of Maynilad. The infrastructure are of the Manuel Pangilinan-led business group suffered a 7.84% drop. MPIC's shares closed at P4.70, down P0.40.
MPIC and Consunji-led DMCI Holdings are joint venture partners in Maynilad. DMCI has a 25.24% stake in the water utility.
DMCI's shares were down 4.44% to P46.25.
Japanese trading firm Marubeni Corporation has a direct 20% stake in Maynilad. - Rappler.com