Manila Water Drops Most in Six Weeks on Tariff ConcernsIan Sayson
Manila Water Co. fell the most in six weeks in Philippine share trading after a report claimed the state regulator may reject requests from water distributors in the nation’s capital to increase rates.
Manila Water sank 4.3 percent to 31.05 pesos at 11:06 a.m. local time, heading for the sharpest loss since June 24. Metro Pacific Investments Corp., owner of Maynilad Water Services Inc., declined 2.9 percent to 4.95 pesos, bound for the steepest drop since July 10.
The government may refuse Manila Water and Maynilad Water Services’s requests, InterAksyon.com reported, citing an unidentified person familiar with the matter. The regulator may even cut fees charged by both utilities, according to the report. Manila Water and Maynilad won government contracts in 1997 to provide water to the Philippine capital. The state regulator reviews their tariffs every five years.
Emmanuel Caparas, head of Metropolitan Waterworks and Sewerage System Regulatory Office, didn’t answer mobile phone calls and text messages seeking comment.
DMCI, a shareholder at Maynilad Water, sank 1.2 percent, heading for a sixth day of losses.