Listed local exchange operator The Philippine Stock Exchange Inc. (PSE) reported a 35-percent decline in its first half net income on the back of lower earnings attributed to a volatile market.
In a statement, PSE said it booked P366.84 million net income in the first semester of the year, which is 35 percent lower than P570.26 million a year ago. January to June revenues also declined by 28 percent to P651.54 million from P909.49 million the same time in 2014.
“Despite the volatilities in the market especially during the second quarter, the market managed to sustain healthy levels of liquidity. We did not see, however, the same transaction sizes as we did last year and this has adversely affected the company’s profit levels,” PSE President and CEO Hans Sicat said in a statement.
Revenues were driven by the total turnover value reaching P1.2 trillion from P993.01 billion in the same period last year. Trading-related revenues also increased by 13.4 percent to P164.28 million from P144.92 during the first half of 2015.
Likewise, service fees generated by the Securities Clearing Corporation of the Philippines — a wholly-owned unit of PSE — jumped by 20.4 percent to P213.42 million from P177.32 million.
Listing-related revenues, on the other hand, declined by 56 percent to P134.12 million despite the series of capital raising activities done during the six month period. These capital raising activities included the initial public offering of Crown Asia Chemicals Corporation, and 18 other transactions at the exchange ranging from follow-on offerings to stock rights offerings and private placements.
“We are hopeful about the pipeline for capital raising during the second half but more importantly, we need to remain steadfast in ensuring we complete other projects we have lined up for the year to support sustained growth for the company. For one, we continue to work for the completion of the integration of the equities and fixed-income exchanges, which will pave the way for a more viable landscape for the Philippine capital markets,” Sicat said.
This year to date, there are two companies that have listed at the stock exchange via initial public offering (IPO): P222-million of Crown Asia Chemicals Corp. and P1.15 billion of SBS Philippines Corp.
The PSE sees nine to 10 companies listing in the exchange this year.