Listing scarcity cuts PSE income

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The Philippine Stock Exchange (PSE) saw its net income dive by 37.38 percent to P450.2 million as of end-September, from P718.9 million a year earlier, following a scarcity in listings.

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“The drop was mainly brought about by the decline in operating revenues by 20.84 percent or by P248.93 million, which was caused by the 45.54 percent or P310.38 million lower listing-related income during the period,” the PSE said in a disclosure on Wednesday.

Following a strong first quarter, the local equities trading has been hit by global volatility, mainly caused by concerns over a slowing China and the likelihood of a US Federal Reserve rate hike.

The PSE said its nine-month operating revenue hit P945.3 million, down from the P1.2 billion recorded a year earlier.

This was partially offset by an 11.15-percent increase in Securities Clearing Corp. of the Philippines service fees and a 9.1-percent rise in trading related income.

Total turnover value of day-to-day trades increased by 11 percent to P1.71 trillion from P1.54 trillion. Average daily value turnover rose to P9.46 billion during the period from P8.42 million a year ago.

Total expenses, meanwhile, inched up by 6.45 percent to P439.84 million from P413.19 million the same time last year.

The PSE expects two to three more initial public offerings for the rest of 2015, which would cap the year with a total of five from the usual nine to ten listings yearly.

The only IPOs so far this year involved pipes and plastics maker Crown Asia, which raised P222.78 million, and chemical trader SBS Philippines that took in P1.15 billion.

Metro Retail Stores Group Inc.’s will make it three later this month, but the firm has slashed its offer price and now expects to raise just P4.037 billion instead of P6.17 billion.

Other IPO plans still to be approved by the PSE but already okayed by the Securities and Exchange Commission involve Italpinas Development Corp. (P242 million), Philstocks Financial Inc. (P185.89 million), DM Wenceslao & Associates Inc. (P21.7 billion), Gweilo Corp. (P105 million), and Datem Inc. (P4.65-billion).

IPO hopefuls include Philippine Primark Properties Inc., Green Power Panay Philippines Inc., Pointwest Technologies Corp., and Pilipinas Shell Petroleum Corp.

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