Water issues continue to dampen market

MANILA, Philippines — The stock market ended the week in the red, still feeling the brunt of the water regulatory issues.

The benchmark Philippine Stock Exchange index (PSEi) retreated by 20.87 points, or 0.27 percent, to close at 7,776.77.

Likewise, the broader All Shares index also slipped by 7.66 points or 0.16 percent to finish at 4,605.17.

Most indexes were down except for the financial sector.

Total value turnover reached P6.8 billion. Market breadth was positive with 101 gainers and 89 losers, while 47 issues were unchanged.

Ed Francisco, president of BDO Capital & Investment Corp., said water issues continue to dampen investor sentiment.

President Duterte has been attacking water concessionaires since last year, saying that the existing water contracts have provisions that are onerous. The President said new contracts removing the onerous provisions would be offered to the water companies.

Water concessionaires are Ayala-led Manila Water for the east zone area and Pangilinan-led Maynilad Water Services Inc. for the west zone. Consunji-owned DMCI Holdings Inc. is also part of Maynilad.

Traders have also noted that the regulatory risks surrounding the water concessionaires could also spill over to other listed companies and other utilities.

The latest trade data also affected sentiment, Philstocks said.

“The dismal November foreign trade data primarily the lower export performance also pulled the market down,” it said.