MANILA, Philippines -- Megaworld Corp. shares and warrants closed lower on Monday, as one of its executives appeared before the Senate impeachment court to shed light on Supreme Court Chief Justice Renato Corona's condominium purchases.

Megaworld shares fell to P1.70 apiece on Monday from the previous day's P1.72. The company's  warrants1 fell 7.5 percent to 74 centavos from 80 centavos, while its warrants2 dropped 6.6 percent to 85 centavos from 91 centavos.

But analysts said the decline in Megaworld's securities stemmed from concerns over an oversupply in the condominium market.

"The outlook for the year is that there is supply pressure in the condo market so we have seen some selling considering Megaworld is one of the leaders in the condo market," said Freya Natividad, investment analyst at 2TradeAsia.com.

Joseph Roxas, president of Eagle Equities Inc., said the outlook for the property sector remains favorable given the low interest rate environment, but there may be an "overbuild" situation in Metro Manila.

"When you look at Metro Manila, there may be too much supply. If you look at overall, I don't think so. If you include the provinces, they are underserved," said Roxas.

Megaworld warrants will allow shareholders to buy shares in the Andrew Tan-led property firm at P1 apiece.

"It's a proxy for the common share. The movement of the warrants follow the common shares. Warrants move faster because there are fewer warrants than common shares," Roxas said.

In 2009, Megaworld listed a total of 4.1 billion warrants in the Philippine Stock Exchange. Shareholders received four warrants for every five existing common shares subscribed to the firm’s P5.1 billion rights offering at the time.

Megaworld's warrants 1 and 2 will mature on December 12, 2014 and June 15, 2015, respectively. interaksyon.com