Property stocks take hit as POGO issues heat up

MANILA, Philippines — Property companies, affected by the controversies surrounding the Philippine Offshore Gaming Co. (POGO), dragged the index lower yesterday.

The benchmark Philippine Stock Exchange index (PSEi)went down by 38.08 points, or 0.48 percent, to close at 7,848.83, down 38.08 points or 0.48 percent, while the broader All Shares index lost 25.93 points, or 0.54 percent, to end at 4,757.15.

Most sectors closed in the red led by the property index which lost 1.78 percent. The holding firms and services gauges also ended lower.

On the other hand, the mining and oil, the financials and the industrial index ended in positive territory.

The China Embassy in Manila has launched a major offensive against offshore gaming firms, urging the Philippine government to ban all online gambling.

“We hope it will further strengthen law enforcement with China and jointly tackle criminal activities including online gambling and cyber fraud. This will help create an enabling environment for the development of bilateral relations and peace and stability in the region,” the Embassy said on Wednesday.

Property companies, which have been benefitting from the fast growing but controversial industry, are bearing the brunt.

Megaworld, the largest office lessor, ended at P4.84 per share, down 8.51 percent. SM Prime Holdings Inc. likewise was down 1.96 percent to P35 per share. Ayala Land Inc. was also down 0.71 percent to P49.15 per share, as was Gotianun-owned Filinvest Land Inc. which lost 2.33 percent to end at P1.68 per share.