Planned Manila Bay rehab drags down property stocks

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Metro Manila (CNN Philippines, January 16) — The property sector took a serious a hit from the government's planned Manila Bay rehabilitation.

The Philippine Stock Exchange fell to 7,864.7, shedding 148.72 points, with all sub-indices except for financials in the red.

The property sub-index had the greatest losses, shedding 180.11 points to a 3831.58 close.  This decline was led by infrastructure giants SM Prime Holdings (SMPH) and Ayala Corporation (AC).

"SMPH encountered a heavy net foreign selling figure of P508M on news that its planned reclamation could be delayed due to the upcoming Manila Bay rehab project. As for the latter, AC weakened today on news of Mitsubishi's sale of 13m shs at P900/sh - a 7.3% discount to yesterday's close," said Gio Perez of P2P Trade Online.

Investors may have placed their money elsewhere, as the U.S. stock market continues its green streak.

"Overseas, U.S. stocks snapped a two-session skid Tuesday as a robust tech rally offset lackluster results from major U.S. banks. News of a fresh round of stimulus in China have also helped to calm fears about the impact of slower Chinese growth on the global economy," said Luis Limlingan from Regina Capital.

The rehabilitation of Manila Bay is set to kick off on January 27.

READ: Gov't takes up challenge of relocating over 200,000 families around Manila Bay