Manila Water shares rebound after justice chief comments

ABS-CBN News

Posted at Dec 18 2019 11:37 AM | Updated as of Dec 18 2019 06:56 PM

MANILA -- Shares of Manila Water soared on Wednesday after Justice Secretary Menardo Guevarra said the government was "not thinking about" replacing the Philippine capital's two water distributors with their concession contracts up for renegotiation.

The Ayala-led utility rose by as much as 12 percent, the most in 10 years, according to Bloomberg. It was up 11 percent to P6.67 at noon trading.

Guevarra's comment eased uncertainty over Manila Water and Maynilad Water Services Inc, both of which were criticized by President Rodrigo Duterte.

The two firms dropped their total P10.8 billion compensation claim against the government over denied petitions for rate increases after Duterte said the payments would result in the public being "milked by billions."

Some $2.4 billion in market value was wiped out from Manila Water and Maynilad since their concession agreements were placed under scrutiny.