Late IPOs boost PSE 2013 income


The Philippine Stock Exchange (PSE) reported a 35.1 percent surge in last year’s net income, boosted by the last-quarter initial public offerings by companies that for most of 2013 were spooked by US economic uncertainty and global market volatility.

For this year, the PSE expects capital raising activities to generate even more than the P175 billion raised in 2013.

In a financial report posted on its website, the PSE said its 2013 net income rose to P844.8 million from P625.3 million in 2012 because of higher listing and trading-related income.

“A lot of the companies understandably had gone into a wait-and-see mode. But in the last quarter, we all saw them coming back with their capital raising plans, which only shows that the stock market remains to be a sound and compelling venue to generate funds,” PSE President and Chief Executive Hans Sicat said.

“The significant growth in our revenues and income highlights the resilience of the company amidst the volatilities experienced by the market arising from uncertainties in the US economy. The country’s sound economic fundamentals and the heightened interest of investors to participate in the growth of our market have provided the impetus for increased trading activity,” Sicat added.

The addition of 10 companies to the roster of listed firms on the PSE pushed up the bourse’s listing-related income by 28.5 percent to P160.07 million.

“This is good for the country’s stock market,” said Astro del Castillo, First Grade Finance managing director.

. The improvement in the PSE’s income does not come totally as a surprise. The local equities market has been getting more attention and interest of late, he said.

“A lot of people have actually started engaging in it,” del Castillo told The Manila Times.

Eight companies launched initial public offerings in 2013, namely, Philippine Business Bank, Asia United Bank Corp., AG Finance Inc., Harbor Star Shipping Services Inc., Travellers International Hotel Group Inc., Robinsons Retail Holdings Inc., Discovery World Corp. and Concepcion Industrial Corp. Two companies, Del Monte Pacific Ltd. and First Metro Exchange Traded Fund, listed by way of introduction.

Trading-related income, meanwhile, jumped 59.4 percent to P118.09 million on the back of robust trading volumes.

Overall revenue rose 33.8 percent to P1.53 billion. Service fees from Securities Clearing Corp. of the Philippines (SCCP), PSE’s wholly owned subsidiary, increased 43.7 percent to P454.68 million.

“We have launched a great number of products and services in 2013, all geared to drive the growth of the company and the stock market over the medium-term.”

For this year, the PSE expects that IPOs will raise more capital than they did last year.

No new figure was given.

The Exchange is also pushing for more Exchange Traded Funds or ETFs to be listed this year and is targeting to launch its short selling program during the first half of the year.

It likewise expects more trading participants to launch their online trading platform using PSETradex in 2014.


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