The Philippine Stock Exchange (PSE) maintained its optimism that listed firms will post a combined double-digit growth for full-year 2013 amid existing market volatility.
Hans Sicat, PSE president and chief executive officer, said that the “guidance is double-digit growth for these companies.”
“When you look at fundamentals of the companies, it remains strong,” he added.
The combined first-quarter profit of all the listed firms in the country grew by 23 percent to P163.4 billion compared to the
P132.54 billion registered in the same period in 2012. This, according to the local bourse, was led by retail, banks, construction, infrastructure and allied services and media.
Total revenues of listed companies for the first three months of 2013 also grew by 15.4 percent to P1.21 trillion from P1.05 trillion the previous year.
Sicat said that the exchange is still anticipating new issuances to come in the latter part of the year, which is also expected to fuel the trend in the market.
“We’re expecting new issuance by companies this September, those companies that are going to try to catch the window before the yearend,” Sicat said.
The local bourse’ executive chief also previously noted that the phenomenal income performance of listed companies has been the main driver of the stock market’s growth this year, while also providing a firm basis for investor optimism on the prospects for listed companies moving forward.
Several days ago, it was reported that the PSE is looking forward to cap this year with a modest full-year earnings growth.
“I think if things go right for us, we will probably be in the P600- [million]to P700-million [full-year net income] area,” Sicat said.
“That’s a big range but it will be great if we will get there. We’ve gained P624 million last year but that’s because we had massive issuance last year,” he added.
According to Sicat, the bourse is seeing a smaller growth rate in revenues because of slowdown in trading value in July and August, but follow-on offerings will continue.
“We will have a few more issuance and we will get to our guidance number,” he said.