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THE Philippine Stock Exchange (PSE) announced on
Wednesday that its first-quarter earnings this year fell due to
lower trading volumes and lesser listings or sales of shares by
listed companies.
The local bourse disclosed that
its net income declined 27.71 percent to P74.42 million, as its
operating income dropped 18.55 percent to P162.84 million year on
year.
Listing-related income dipped by
18.98 percent and trading-related fees likewise fell by 21.15
percent due to lower trading volumes. Service fees from the
Securities Clearing Corp. of the Philippines (SCCP), a wholly owned
unit of the PSE, also declined.
In the first three months this
year, only Pepsi Cola Products Philippines Inc. sold its shares to
the public for the first time amid a very volatile market. Other
companies that earlier announced capital-raising activities have
since put off their plans toward the second half or by year-end. As
a result, the PSE registered a 76 percent fall in follow-on listings
to P13.85 million, with listing-related income accounting for almost
42 percent of operating income. SCCP service fees made up 28 percent
of the bourse’s operating income.
Operating expenses meanwhile rose
by 6.23 percent to P60.76 million despite some cost-cutting
measures. The local bourse saved on limited membership and market
development expenses, which went down by 15.11 percent and 51.15
percent, respectively. The PSE also cut back on entertainment,
amusement, and recreation expenses by almost 25 percent, even as it
removed infrastructure fees.
The higher spending can be traced
back to increases in compensation and other staff-related costs as
additional personnel were hired while occupancy costs rose due to
higher rates of security and janitorial services. The PSE also paid
higher consultancy fees, IT costs, repairs and maintenance, travel
and transportation due to numerous trips abroad and increased office
expenses.
Total resources for the period
were 15.53 percent higher at P2.79 billion, as cash and cash
equivalents surged by 217.23 percent to P384.57 million due to
delayed implementation of projects in the pipeline. Short-term
investments and available-for-sale securities rose by 40.77 percent
to P876.78 million due to improved collection of current and past
due accounts.
Current liabilities jumped by
87.12 percent to P628.4 million due to a declaration of dividends
amounting to P305.55 million. It has retained earnings of P356.43
million.
--Likha C. Cuevas-Miel
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