After the government rejected both Maynilad and Manila Water’s price increase last 2013, news broke out just now that Maynilad won the arbitration battle which allows them to raise rates in the western zone of its concession zone.
This will give Maynilad extra earnings of about 12.60 Pesos for every 10 cubic meters per month to 79.80 Pesos for every 30 cubic meters per month.
This is good news for investors of the stock as this brings a jolt of optimism that could bring the stock further upward. If you would recall the arbitration case is one of the issues that prevented both MWC and MPI to move up in price as investors were quite hesistant on the future earnings of the company.
Both MWC and MPI have already broken out of their resistances and if the positive sentiment is strong enough we may see both stocks go even higher.
Congratulations to those who positioned early and to those who bought the stocks when all of them were still relatively cheaper! I hope your portfolio would go up this year like never before!
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*Photos via google search
*Charts via Reuters